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

Production possibility curve (PPC) diagrams — practice question

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?

  • AAll resources are used for the production of consumer goods.
  • BMore resources are allocated to producing capital goods than consumer goods.
  • CResources are allocated to produce a mixture of consumer goods and capital goods.
  • DTotal resources are not being fully utilised for production of these goods.

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