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

Production possibility curve (PPC) diagrams — practice question

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?

  • Aa decrease in the price of manufactured goods
  • Ba major war
  • Can improvement in fertilisers
  • Dan increase in the employment rate

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