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Economics · Oct / Nov 2017 · Paper 13 · Question 3

2281Production possibility curve (PPC) diagrams

The diagram shows a production possibility curve diagram. A country's initial position is X. Better manufacturing processes are introduced and the country improves its tourist facilities. What would represent this?

  1. AS to T
  2. BT to R
  3. CX to R
  4. DX to T

As printed in the paper

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Correct answer: C. X to R

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