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

Production possibility curve (PPC) diagrams — practice question

Countries X and Y possess the same resources. The diagram illustrates their production possibility curves. What conclusion can be drawn from the diagram?

  • AX can produce food and drink more cheaply than Y.
  • BX experiences higher unemployment than Y.
  • CY can produce food and drink more efficiently than X.
  • DY has higher retail prices than X.

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