A-LevelEconomicsBasic economic ideas and resource allocation9708/12 · Oct/Nov 2022 · Q51 Mark
The diagram shows an economy's production possibility curve (PPC). The economy has moved from X to Y. What can be deduced from the diagram?
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.
ACurrent living standards have fallen.
BThe economy has become more efficient.
CThere has been a rise in unemployment.
DThere has been an opportunity cost of OR consumer goods.
✓ Correct answer
B: The economy has become more efficient.
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