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Economics · May / June 2019 · Paper 11 · Question 2

2281Production possibility curve (PPC) diagrams

The diagram shows a production possibility curve (PPC). Why is the curve usually drawn like this?

  1. AInternational free trade exists.
  2. BOpportunity cost changes.
  3. CResources are unlimited in supply.
  4. DSome resources will be unemployed.

As printed in the paper

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Correct answer: B. Opportunity cost changes.

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