O-LevelEconomicsThe basic economic problem2281/11 · May/June 2022 · Q211 Mark
An economy experiences a recession and moves from full employment to 5% unemployment. Which movement from X to Y on the PPC diagram shows the consequence for the economy? [Figure 21.1]
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.
ADiagram showing point X on the PPC and point Y inside the PPC, with both capital and consumer goods decreasing.
BDiagram showing point X on the PPC and point Y on the PPC, with capital goods increasing and consumer goods decreasing.
CDiagram showing point X on the PPC and point Y inside the PPC, with both capital and consumer goods decreasing (Y further left on consumer goods axis).
DDiagram showing point X on the PPC and point Y inside the PPC, with both capital and consumer goods decreasing (Y more 'south-east' from X).
✓ Correct answer
A: Diagram showing point X on the PPC and point Y inside the PPC, with both capital and consumer goods decreasing.
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