Economics 9708 · AS & A Level · Production possibility curves

Production possibility curves — practice question

In the diagram, JK shows the economy’s original production possibility curve for computers and cars. What might lead the curve to move to JL?

  • Aa fall in output per worker in the car industry
  • Ba fall in the level of competition in the car industry
  • Ca rise in the potential workforce of the economy
  • Da rise in the price of cars

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