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Production possibility curve (PPC) diagrams

1.4

What the syllabus asks of you

  • Production possibility curves (PPC): definition
  • Production possibility curves (PPC): drawing and interpretation of the PPC diagram
  • Points under, on and beyond a PPC: the significance of the location of different production points
  • Movements along a PPC: the significance of movements along a PPC and opportunity cost
  • Shifts of a PPC: causes and consequences of shifts of a PPC in terms of an economy’s growth

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Chapter 1: Production possibility curve (PPC) diagrams

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Drill this topic

Every question on Production possibility curve (PPC) diagrams, untimed, marked as you go.

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Make a worksheet

Choose the years and how many questions, then print it with the answers on separate pages.

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36 questions

1May / June 2026 · Paper 11 · Q3
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Athe opportunity cost of capital goods has increased
Beconomic growth has occurred
Cthe production of consumer goods has increased
Dunemployment has fallen

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2Oct / Nov 2025 · Paper 12 · Q3
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AA
BB
CC
DD

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3Oct / Nov 2025 · Paper 13 · Q3
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AA
BB
CC
DD

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4May / June 2025 · Paper 11 · Q3
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AW to X
BW to Y
CX to W
DZ to X

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5May / June 2025 · Paper 12 · Q3
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Aemployed workers become more productive
Bunemployed workers find new jobs
Cworkers emigrate for higher wages
Dworkers retire at younger ages

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6Oct / Nov 2024 · Paper 12 · Q3
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AA
BB
CC
DD

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7May / June 2024 · Paper 11 · Q3
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Adecreased unemployment in industries producing good X
Bimprovement in technology used to produce good X
Cincreased productivity of workers producing good X
Dincreased resource allocation to the production of good X

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8May / June 2024 · Paper 12 · Q3
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AO and Q
BP and O
CR and S
DU and V

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9Oct / Nov 2023 · Paper 12 · Q2
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APPC shifts left; population size increases
BPPC shifts right; population size unchanged
CPPC unchanged; population size decreases
DPPC unchanged; population size unchanged

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10May / June 2023 · Paper 11 · Q2
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Aeconomic growth is falling
Binefficient use of resources available
Cmaximum output possible with current technology
Dtotal demand for goods and services

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11May / June 2023 · Paper 12 · Q2
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Abetter education: false; higher investment: false; lower unemployment: true
Bbetter education: false; higher investment: true; lower unemployment: false
Cbetter education: true; higher investment: false; lower unemployment: true
Dbetter education: true; higher investment: true; lower unemployment: false

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12Oct / Nov 2022 · Paper 12 · Q3
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AU, V, W, X
BU, V, X, Y
CU, V, X, Z
DV, X, Y, Z

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13Oct / Nov 2022 · Paper 13 · Q3
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Achange 1: a fuller use of existing resources in onion farms; change 2: a reduction in the price of sweet potatoes
Bchange 1: a reduction in the price of onions; change 2: a larger population in the country
Cchange 1: an increase in the price of sweet potatoes; change 2: an increased consumer preference for onions
Dchange 1: an increase in the training of onion farmers; change 2: a greater use of technology on onion farms

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14May / June 2022 · Paper 11 · Q21
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APPC diagram A: X on the curve, Y inside the curve
BPPC diagram B: X on the outer curve, Y on the inner curve
CPPC diagram C: X on the curve, Y on the curve
DPPC diagram D: X outside the curve, Y on the curve

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15May / June 2022 · Paper 11 · Q24
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AIt answers the question of what to produce in an economy.
BIt enables microeconomic decisions to be taken by firms.
CIt measures the supply of goods and services available in an economy.
DIt shows the productive capacity in an economy at a point in time.

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16May / June 2022 · Paper 12 · Q3
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Aa change in what consumers want to buy
Ba recession
Cmore investment
Dthe use of previously unemployed resources

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17Oct / Nov 2021 · Paper 13 · Q2
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ADiagram A
BDiagram B
CDiagram C
DDiagram D

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18May / June 2021 · Paper 11 · Q3
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AA
BB
CC
DD

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19Oct / Nov 2020 · Paper 12 · Q3
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AFirms have decided to increase investment in technology.
BNew economic resources have been discovered in the country.
CThe government has brought about an increase in living standards.
DThe government has encouraged long-term economic growth.

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20Oct / Nov 2020 · Paper 13 · Q3
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A60 units of consumer goods
B70 units of capital goods
C100 units of capital goods
D180 units of consumer goods

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21May / June 2020 · Paper 11 · Q3
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Aby a movement from Q to W
Bby a movement from Q to X
Cby a movement from Q to Y
Dby a movement from Q to Z

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22May / June 2020 · Paper 12 · Q2
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A
B
C
D

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23Oct / Nov 2019 · Paper 12 · Q2
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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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24May / June 2019 · Paper 11 · Q2
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AInternational free trade exists.
BOpportunity cost changes.
CResources are unlimited in supply.
DSome resources will be unemployed.

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25May / June 2019 · Paper 12 · Q2
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A
B
C
D

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26Oct / Nov 2018 · Paper 12 · Q3
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AA movement from X to Y shows a decrease in efficiency in the economy.
BA movement from X to Z shows a discovery of new resources in the economy.
CA movement from Y to Z shows resources are being diverted from capital goods to consumer goods.
DA movement from Z to Y shows an increase in efficiency in the economy.

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27Oct / Nov 2018 · Paper 13 · Q3
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AW to X
BW to Y
CY to X
DY to Z

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28May / June 2018 · Paper 12 · Q3
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A
B
C
D

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29Oct / Nov 2017 · Paper 12 · Q3
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AK to N
BL to K
CN to K
DN to M

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30Oct / Nov 2017 · Paper 13 · Q3
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AS to T
BT to R
CX to R
DX to T

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31May / June 2017 · Paper 11 · Q3
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A
B
C
D

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32May / June 2017 · Paper 12 · Q3
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AX to W
BX to Y
CZ to W
DZ to Y

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33Oct / Nov 2016 · Paper 12 · Q3
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AP to R
BQ to R
CS to Q
DS to R

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34Oct / Nov 2016 · Paper 13 · Q3
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Aby a movement from R to S
Bby a movement from R to V
Cby a movement from S to T
Dby a movement from U to V

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35May / June 2016 · Paper 11 · Q1
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Aa better educated workforce
Ba decrease in availability of raw materials
Cincreased wages
Dlower productivity

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36May / June 2016 · Paper 12 · Q1
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Aeconomies of scale
Bequilibrium price
Cmaximum profit
Dopportunity cost

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