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Economics (AS & A Level) · May / June 2021 · Paper 32 · Question 23

9708Production possibility curves

At the start of the year, the production possibility frontier for an economy is at PPF₁ and the economy is at point S. At the end of the year the production possibility frontier is at PPF₂ and the economy is at point T. Which diagram shows that the economy has experienced actual growth but not potential growth?

  1. ADiagram A
  2. BDiagram B
  3. CDiagram C
  4. DDiagram D

As printed in the paper

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Correct answer: A. Diagram A

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