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

Production possibility curve (PPC) diagrams — practice question

The diagram illustrates a production possibility curve for an economy able to produce agricultural products or financial services. It is presently at point Q. A crop disease reduces agricultural production, whereas the financial services sector raises output because demand has increased. To which point is the economy likely to move?

  • AA
  • BB
  • CC
  • DD

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