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

Production possibility curve (PPC) diagrams — practice question

The diagram illustrates production possibility curves (PPC) for an economy producing two goods: sweet potatoes and onions. At first, the economy is operating on PPC$_1$. Which combination of changes could move PPC$_1$ to PPC$_2$?

  • Achange 1: a fuller use of existing resources in onion farms; change 2: a reduction in the price of sweet potatoes
  • Bchange 1: a reduction in the price of onions; change 2: a larger population in the country
  • Cchange 1: an increase in the price of sweet potatoes; change 2: an increased consumer preference for onions
  • Dchange 1: an increase in the training of onion farmers; change 2: a greater use of technology on onion farms

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