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

Production possibility curve (PPC) diagrams — practice question

The diagram illustrates two production possibility curves. Which statement correctly describes the movement from point X to point Y?

  • ADemand for consumer goods has risen.
  • BThe opportunity cost for producing consumer goods has risen.
  • CThere has been an increase in productivity in consumer goods production.
  • DThere has been an inward shift in the production possibility curve.

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