The curve PP in the diagram is the production possibility curve for a country producing goods X and Y. The production of X is more labour intensive than the production of Y. [Figure showing a production possibility curve PP and other curves RR, QQ, SS, TT, with good Y on vertical axis and good X on horizontal axis] The working hours of the labour force are reduced by law. Which curve could be the country's new production possibility curve?
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✓ Correct answer
B: SS
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