O-LevelEconomicsThe allocation of resources2281/12 · May/June 2023 · Q21 Mark

A country's production possibility curve (PPC) moves from PPC₁ to PPC₂. [Figure 2.1: Graph showing consumer goods on y-axis and capital goods on x-axis, with PPC1 and PPC2 indicating an outward shift]. What could cause this movement in the PPC?

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Abetter education: false, higher investment: false, lower unemployment: true

Bbetter education: false, higher investment: true, lower unemployment: false

Cbetter education: true, higher investment: false, lower unemployment: true

Dbetter education: true, higher investment: true, lower unemployment: false

✓ Correct answer

D: better education: true, higher investment: true, lower unemployment: false

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Topic: The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2023 Paper 1 Variant 2, question 2.

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