Production possibility curve (PPC) diagrams

The diagram illustrates a country’s production possibility curve for rice and wheat. A major flood destroys a large area of agricultural land. Which movement might show the change in output that results?

Feb/March 2016

The diagram illustrates a production possibility curve for a country. Because demand for manufactured goods rises, it shifts from unemployment to full employment. How would this be shown on this diagram?

Feb/March 2017

Businesses combine land, labour, capital and enterprise in different proportions when making their goods. A production possibility diagram can be used to show how a country's resources may be allocated, and how fully those resources are being used.

Feb/March 2017

The diagram illustrates the change in an economy’s production possibility curve (PPC) from year $1$ to year $2$. What could account for the shift from year $1$ to year $2$?

Feb/March 2019

The diagram illustrates a country's production possibility curve (PPC) while it is operating at point $T$. The country has an ageing population and chooses to direct more resources towards the production of health services. Which movement illustrates this change in resource allocation?

Feb/March 2020

The main sectors in the Seychelles, an island nation in the Indian ocean, are tourism and fishing. The price elasticity of supply of fish is influenced by the relatively short period for which fish can be kept. Economic goods and free goods are important in both fishing and tourism. As workers have become more skilled and enterprise has increased, GDP per head has risen by more than seven times over the last fifty years.

Feb/March 2020

The diagram illustrates a production possibility curve (PPC) for digital televisions and CD players. Which movement indicates a rise in the use of existing resources to raise production of both digital televisions and CD players?

Feb/March 2024

The diagram illustrates an original production possibility curve, $\text{PPC}_1$. What is most likely to have brought about the shift of the production possibility curve from $\text{PPC}_1$ to $\text{PPC}_2$?

Feb/March 2025

For an economy with a fixed quantity of resources, if it can make food or computers, it is located at point Q on its production possibility curve. Because the population increases, a larger share of resources must now be used for food production. In the short term, which point will the economy move to on the diagram?

May/June 2015

The diagram presents production possibility curves (PPC) for a country able to make agricultural products or manufactured products. The country's present PPC goes through points Q and S, although it is currently facing unemployment. If full employment now occurs while new agricultural techniques also raise productivity, what movement would be shown on the PPC diagram?

May/June 2015

During 2013, an earthquake at the Iran/Pakistan border ruined many factories and homes. Some officials argued that the Governments ought to rebuild the factories and homes, despite the opportunity cost. Others suggested that some people should be encouraged to emigrate.

May/June 2015

When deciding about university, students need to weigh the opportunity cost. People who complete university normally earn more than those who do not attend university. A larger number of graduates affects a country’s production possibility curve. Some economists argue that students ought to cover the entire expense of their university courses and accommodation. Others believe the government should meet part or all of the expense.

May/June 2015

The diagram illustrates an original production possibility curve, $\text{PPC}_1$. Which factor could bring about the shift of the production possibility curve from $\text{PPC}_1$ to $\text{PPC}_2$?

May/June 2016

Which of the following statements about a production possibility curve is correct?

May/June 2016

In 2014, Cuban doctors were awarded pay increases that raised their salaries substantially. As a result, doctors earned more than twice the pay of nurses. Cuba is allocating more resources to both medical care and tourism, which is changing the country’s production possibility curve. Living standards are rising in the country, although the pace is slower than in some other nearby countries.

May/June 2016

The diagram illustrates a production possibility curve for an economy. Which point on the diagram represents the highest efficiency for producing both consumer goods and capital goods?

May/June 2017

The diagram illustrates a production possibility curve for cars and furniture. A recession leads to lower output of both cars and furniture. Which movement would show this change?

May/June 2017

The diagram illustrates a production possibility curve for agriculture and machinery. As a country develops, primary production falls while secondary production rises. Which movement would show this change?

May/June 2017

Indonesia's output is shaped by its factors of production. A production possibility curve diagram can be used to illustrate the link between resources and output. Indonesia does have extensive fishing waters, yet it does not actually catch many fish. Most fishing firms are small, and they compete with much larger foreign firms. Those larger foreign firms have been drawn into Indonesia's waters because demand for fish is rising. The price elasticity of demand for different types of fish has changed over the last few years.

May/June 2017

The diagram depicts a production possibility curve (PPC). Which point is most likely to result in the largest outward movement of the PPC?

May/June 2018

The diagram illustrates a country’s initial production possibility curve XX. What might lead the country’s production possibility curve to shift from XX to XY?

May/June 2018

The diagram illustrates a production possibility curve (PPC). Why is the curve normally shown in this shape?

May/June 2019

The diagram illustrates a production possibility curve (PPC) for an economy producing both capital goods and consumer goods. At which point will the economy have the greatest potential for sustained long run economic growth?

May/June 2019

What would lead to an outward movement of a country’s production possibility curve (PPC)?

May/June 2019

A natural disaster damaged a country’s infrastructure. Before the disaster, the country was operating at point Y on the production possibility curve (PPC). Which point indicates the country’s production straight after the disaster?

May/June 2021

The production possibility curve (PPC) illustrates the number of hours per day that a person can allocate to either work or leisure. A person works $6$ hours a day, but later chooses to work $9$ hours a day. Which movement represents this change?

May/June 2021

Worldwide spending on the health sector, from both private and public sectors, is greater than that of all other sectors, including education and defence. Money invested in education and the health sector has led to the introduction of new life-saving technology. Nevertheless, the demand for some vaccinations has fallen over time, causing the demand curve for vaccinations to move left.

May/June 2021

An economy goes into recession and shifts from full employment to 5% unemployment. Which movement from X to Y on the PPC diagram illustrates the effect on the economy?

May/June 2022

What is the role of an economy’s production possibility curve (PPC)?

May/June 2022

The diagram illustrates two production possibility curves for a country. What could bring about a move from point K to point L in the country’s production?

May/June 2022

Which factors would cause a country's production possibility curve to move?

May/June 2022

What does a point on a production possibility curve indicate for an economy?

May/June 2023

A country's production possibility curve (PPC) shifts from $\text{PPC}_1$ to $\text{PPC}_2$. What might bring about this change in the PPC?

May/June 2023

A country’s production possibility curve has moved from $\text{PPC}_1$ to $\text{PPC}_2$. What might have led to this change?

May/June 2023

In Greece, households with high incomes spend more than the typical household. The level of spending in an economy affects whether production is located on or within its production possibility curve (PPC). In 2020, household spending in Greece declined. This influenced some firms’ intentions to merge. It also raised unemployment. More than half of the unemployed people in Greece had been jobless for over a year.

May/June 2023

The diagram illustrates a production possibility curve (PPC) for an economy. Why does the economy shift from point M to point N?

May/June 2024

The diagram illustrates a country’s production possibility curve (PPC). Which present mix of capital and consumer goods would result in the highest quantity of consumer goods in the future?

May/June 2024

The diagram illustrates a production possibility curve (PPC). The economy is making full use of all its available resources. A government chooses to promote greater output of manufactured goods rather than agricultural goods. Which movement indicates this policy change?

May/June 2025

The diagram illustrates the production possibility curve (PPC) for an economy located at point X. Which change in the economy’s labour market would enable it to move to point Y?

May/June 2025

An economy uses its limited resources to produce different kinds of goods. This may be represented by a production possibility curve (PPC). What does point X on the PPC indicate?

May/June 2025

The diagram illustrates a production possibility curve for an economy that is able to produce financial services or agricultural products. The economy is currently at point $X$. Bad weather destroys some of the agricultural produce. At which point in the diagram will the economy be?

Oct/Nov 2015

The diagram illustrates a production possibility curve for an economy that is able to make rice or electronic equipment. The economy is located at point Q. A recession leads to unemployment in the electronics industries. At which point will the economy be shown on the diagram?

Oct/Nov 2015

The figure presents a production possibility curve for an economy able to produce agricultural products or financial services. It is presently located at point Q. A crop disease lowers agricultural production, while the financial services sector raises output because demand has increased. To which point is the economy most likely to shift?

Oct/Nov 2015

The diagram illustrates a production possibility curve for maize and cotton. Unfavourable weather leads to a low yield of both crops. Which movement could be used to show this change?

Oct/Nov 2016

In 2014, private companies started drilling in parts of the country in order to exploit natural gas supplies that were already known to be present. How could this decision be shown on the diagram that illustrates a production possibility curve for the country?

Oct/Nov 2016

The economy is currently at point X on its production possibility curve (PPC). A drought cuts agricultural output by a large amount. Which point shows the new position?

Oct/Nov 2017

The diagram illustrates a production possibility curve. The country is fully employing all its resources to make both manufactured goods and services. Which movement would indicate a technological improvement in manufacturing?

Oct/Nov 2017

The illustration is a production possibility curve diagram. A country begins at position X. More efficient manufacturing methods are introduced, and the country also upgrades its tourist facilities. What would this be shown by?

Oct/Nov 2017

In a few countries, people with high incomes are now putting in more hours on average than those on low incomes. One explanation is that well-paid jobs are believed to offer greater job satisfaction. Enjoying work can result in high labour productivity.

Oct/Nov 2017

The diagram illustrates the production possibility curve (PPC) of an economy. What happens to the opportunity cost of making additional consumer goods, measured in capital goods, as the economy moves down its PPC from point X to point Z?

Oct/Nov 2018

The diagram illustrates a country’s production possibility curve (PPC). Which statement is correct?

Oct/Nov 2018

The diagram illustrates a production possibility curve (PPC) for an economy. Which movement on the diagram might show an increase in unemployment?

Oct/Nov 2018

Countries X and Y possess the same resources. The diagram illustrates their production possibility curves. What conclusion can be drawn from the diagram?

Oct/Nov 2019

The diagram illustrates two production possibility curves. Which statement correctly describes the movement from point X to point Y?

Oct/Nov 2019

The diagram illustrates an economy’s production possibility curve (PPC). The economy shifts from point X to point Y. What is the most likely consequence of this change?

Oct/Nov 2020

The diagram illustrates a production possibility curve (PPC) for a country. The country shifted from point X to point Y on the PPC. What is the most likely explanation for this change?

Oct/Nov 2020

Several countries, Morocco among them, collect water from fog. Water is used in the primary, secondary and tertiary sectors. Over the last few years, Morocco has raised both the quantity and the quality of its resources and has shifted more of them into the tertiary sector. The quantity, quality and composition of a country’s resources are affected by a range of factors, including its birth rate. Morocco’s birth rate fell from 19.9 in 2016 to 18.7 in 2018.

Oct/Nov 2021

The diagram depicts a production possibility curve (PPC) for country Z. The government’s policy aims to shift the economy from point X to point Y on the PPC. What is the most likely result of this policy?

Oct/Nov 2022

The diagram presents a production possibility curve (PPC) together with several combinations of tea and coffee output. Which of these combinations of tea and coffee can the economy produce at present?

Oct/Nov 2022

The diagram illustrates production possibility curves (PPC) for an economy producing two goods: sweet potatoes and onions. At first, the economy is operating on PPC$_1$. Which combination of changes could move PPC$_1$ to PPC$_2$?

Oct/Nov 2022

Country X’s economy is always operating on its production possibility curve (PPC). At what time will the goods and services produced by country X be less plentiful?

Oct/Nov 2023

The diagram illustrates a production possibility curve (PPC) for a country. The country shifted from position X to position Y on the PPC. What is the most likely explanation for this change?

Oct/Nov 2023

The diagram illustrates a production possibility curve (PPC) for an economy that makes two goods, X and Y. At which point is the opportunity cost of producing one additional unit of good X the highest?

Oct/Nov 2024

During 2021, the production point on the UK’s production possibility curve (PPC) shifted. Average wages rose. The mean yearly wage for a waiter was $23,580, whereas the average annual pay of a chief executive of a large commercial bank was $1,617,000. When wages rise, people can afford to eat out in restaurants more frequently. Some food sold by UK restaurants is brought in from abroad. In 2021, the UK government concluded free trade agreements, which removed import restrictions, with several countries.

Oct/Nov 2024

The diagram depicts a country's production possibility curve (PPC). What would result in a move from point X to point Y?

Oct/Nov 2025

A country is operating at point X on its production possibility curve (PPC), showing how output can be divided between capital goods and consumer goods. A recession later leads to the closure of some factories. Which point might show the country’s new position?

Oct/Nov 2025

The diagram illustrates a production possibility curve (PPC). Which point is most likely to cause the PPC to shift outward the most?

Oct/Nov 2025

In Belgium, some markets are in equilibrium. The nation makes a broad range of goods and services that have different levels of price elasticity of demand. The Belgian Government wants the economy to shift to a production possibility point beyond its present production possibility curve (PPC). One sector of Belgium’s economy that is performing well is the scientific industry. Workers in this industry have a high degree of specialisation.

Oct/Nov 2025