O-LevelEconomicsThe basic economic problem2281/11 · May/June 2024 · Q31 Mark

The diagram shows a production possibility curve (PPC) for an economy. [Diagram of PPC with good Y on y-axis, good X on x-axis, points M and N on the curve] What is the reason for the economy moving from point M to point N?

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.

Adecreased unemployment in industries producing good X

Bimprovement in technology used to produce good X

Cincreased productivity of workers producing good X

Dincreased resource allocation to the production of good X

✓ Correct answer

D: increased resource allocation to the production of good X

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Topic: The basic economic problem, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2024 Paper 1 Variant 1, question 3.

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