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

Production possibility curve (PPC) diagrams — practice question

The diagram illustrates a country’s production possibility curve (PPC). Which statement is correct?

  • AA movement from X to Y shows a decrease in efficiency in the economy.
  • BA movement from X to Z shows a discovery of new resources in the economy.
  • CA movement from Y to Z shows resources are being diverted from capital goods to consumer goods.
  • DA movement from Z to Y shows an increase in efficiency in the economy.

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