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Economics · Oct / Nov 2016 · Paper 12 · Question 3

2281Production possibility curve (PPC) diagrams

The diagram shows a production possibility curve for maize and cotton. Bad weather causes a poor harvest for both crops. Which movement could be used to represent this change?

  1. AP to R
  2. BQ to R
  3. CS to Q
  4. DS to R

As printed in the paper

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Correct answer: B. Q to R

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