A-LevelEconomicsBasic economic ideas and resource allocation9708/12 · Oct/Nov 2017 · Q31 Mark
Economy X uses its resources in the labour-intensive production of wheat and wooden furniture as shown by the production possibility curve FW. With the help of new strains of wheat seeds, X increased yields and shifted to a new production possibility curve. Which diagram depicts this change?
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
ADiagram A showing original PPC from F (y-axis) to W (x-axis), and a new PPC from F1 (below F) to W (same x-intercept).
BDiagram B showing original PPC from F (y-axis) to W (x-axis), and a new PPC from F1 (below F) to W (right of original W).
CDiagram C showing original PPC from F (y-axis) to W (x-axis), and a new PPC from F (same y-intercept) to W (right of original W).
DDiagram D showing original PPC from F (y-axis) to W (x-axis), and a new PPC from F (same y-intercept) to W (left of original W).
✓ Correct answer
C: Diagram C showing original PPC from F (y-axis) to W (x-axis), and a new PPC from F (same y-intercept) to W (right of original W).
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