Economics 9708 · AS & A Level · Production possibility curves

Production possibility curves — practice question

The diagram illustrates an economy’s production possibility curve (PPC). The economy has shifted from X to Y. What can be inferred from the diagram?

  • ACurrent living standards have fallen.
  • BThe economy has become more efficient.
  • CThere has been a rise in unemployment.
  • DThere has been an opportunity cost of OR consumer goods.

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