Economics 0455 · IGCSE · Production possibility curve (PPC) diagrams

Production possibility curve (PPC) diagrams — practice question

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 $2$?

  • AResources have moved from the production of services to the production of goods.
  • BThe number of workers unemployed in manufacturing has fallen.
  • CThe producers of services have introduced better technology.
  • DThe workers in the production of goods have become less efficient.

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