Economics 2281 · O Level · Production possibility curve (PPC) diagrams

Production possibility curve (PPC) diagrams — practice question

The diagram depicts production possibility curves (PPC) for a country able to make agricultural products or manufactured products. At present, its PPC goes through points Q and S, but the country is facing unemployment. If full employment now occurs and, at the same time, new agricultural techniques raise productivity, what change would be shown on the PPC diagram?

  • AP to R
  • BP to S
  • CQ to R
  • DS to Q

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