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

Production possibility curve (PPC) diagrams — practice question

The diagram illustrates a production possibility curve (PPC) for a country. The country shifted from position X to position Y on the PPC. What is the most likely explanation for this change?

  • AFirms have decided to increase investment in technology.
  • BNew economic resources have been discovered in the country.
  • CThe government has brought about an increase in living standards.
  • DThe government has encouraged long-term economic growth.

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