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

Production possibility curve (PPC) diagrams — practice question

The diagram illustrates a production possibility curve (PPC). The economy is making full use of all the resources it has available. A government chooses to promote the production of manufactured goods rather than agricultural goods. Which movement indicates this policy change?

  • AW to X
  • BW to Y
  • CX to W
  • DZ to X

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