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Economics · Oct / Nov 2017 · Paper 12 · Question 3

2281Production possibility curve (PPC) diagrams

The diagram shows a production possibility curve. The country is using all its resources to produce both manufactured goods and services. What movement would represent an improvement of technology in manufacturing?

  1. AK to N
  2. BL to K
  3. CN to K
  4. DN to M

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Correct answer: D. N to M

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