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

Production possibility curve (PPC) diagrams — practice question

A country is operating at point X on its production possibility curve (PPC), showing how output can be divided between capital goods and consumer goods. A recession later leads to the closure of some factories. Which point might show the country’s new position?

  • APoint A
  • BPoint B
  • CPoint C
  • DPoint D

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