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

Production possibility curve (PPC) diagrams — practice question

The diagram illustrates a production possibility curve (PPC) for an economy. Why does the economy move from point M to point N?

  • Adecreased unemployment in industries producing good X
  • Bimprovement in technology used to produce good X
  • Cincreased productivity of workers producing good X
  • Dincreased resource allocation to the production of good X

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