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Economics (AS & A Level) · Oct / Nov 2025 · Paper 13 · Question 5

9708Production possibility curves

The diagram shows a production possibility curve (PPC) for an economy that produces two goods, X and Y. Both goods require labour to produce. The initial position of the PPC is at PPC0. What is the effect on the PPC following the emigration of a large number of workers?

  1. Athe PPC remains at PPC0
  2. Bthe PPC shifts from PPC0 to PPC1
  3. Cthe PPC shifts from PPC0 to PPC2
  4. Dthe PPC shifts from PPC0 to PPC3

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Correct answer: B. the PPC shifts from PPC0 to PPC1

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