O-LevelEconomicsThe basic economic problem2281/11 · May/June 2020 · Q31 Mark
The diagram shows a production possibility curve (PPC) for an economy that can produce cotton and cars. The economy is at point Q. There is improved technology that can only be used in the production of cars. How would this be represented on this diagram? [Figure 3.1]
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.
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
✓ Correct answer
B: by a movement from Q to X
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