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

Production possibility curve (PPC) diagrams — practice question

The diagram illustrates an economy’s production possibility curve (PPC). The economy shifts from point X to point Y. What is the most likely consequence of this change?

  • ADifferent quantities of the goods are produced.
  • BMore people are employed.
  • CThere is an immediate fall in gross domestic product.
  • DThere is an increase in investment.

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