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

Production possibility curve (PPC) diagrams — practice question

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?

  • AP to R
  • BP to S
  • CQ to R
  • DS to Q

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