Economics · Oct / Nov 2019 · Paper 12 · Question 2
2281Production possibility curve (PPC) diagrams
The diagram shows two production possibility curves. Which statement about the movement from point X to point Y is correct?
- ADemand for consumer goods has risen.
- BThe opportunity cost for producing consumer goods has risen.
- CThere has been an increase in productivity in consumer goods production.
- DThere has been an inward shift in the production possibility curve.
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Correct answer: C. There has been an increase in productivity in consumer goods production.
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