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

Production possibility curve (PPC) diagrams — practice question

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?

  • AA
  • BB
  • CC
  • DD

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