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Economics · May / June 2017 · Paper 12 · Question 3

2281Production possibility curve (PPC) diagrams

The diagram shows a production possibility curve for cars and furniture. A recession causes a decrease in production in both cars and furniture. Which movement would represent this change?

  1. AX to W
  2. BX to Y
  3. CZ to W
  4. DZ to Y

As printed in the paper

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Correct answer: B. X to Y

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