Economics · Oct / Nov 2025 · Paper 12 · Question 3
2281Production possibility curve (PPC) diagrams
A country is producing at point X on its production possibility curve (PPC) which shows how it can allocate its production between capital goods and consumer goods. A period of recession then causes some of its factories to close. Which point could represent the country's new position?
- AA
- BB
- CC
- DD
As printed in the paper
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Correct answer: C. C
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