Economics · Oct / Nov 2022 · Paper 13 · Question 3

The diagram shows production possibility curves (PPC) for an economy that produces two goods, sweet potatoes and onions. Initially the economy is operating on PPC1. Which combination of changes could shift PPC1 to PPC2?

1. Achange 1: a fuller use of existing resources in onion farms; change 2: a reduction in the price of sweet potatoes
2. Bchange 1: a reduction in the price of onions; change 2: a larger population in the country
3. Cchange 1: an increase in the price of sweet potatoes; change 2: an increased consumer preference for onions
4. Dchange 1: an increase in the training of onion farmers; change 2: a greater use of technology on onion farms

As printed in the paper