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Economics · Oct / Nov 2016 · Paper 13 · Question 3

2281Production possibility curve (PPC) diagrams

In 2014 private companies began to drill in areas of the country to exploit natural gas supplies that were known to exist. How might this decision be represented on the diagram which shows a production possibility curve for the country?

  1. Aby a movement from R to S
  2. Bby a movement from R to V
  3. Cby a movement from S to T
  4. Dby a movement from U to V

As printed in the paper

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Correct answer: C. by a movement from S to T

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