CAIE IGCSE Economics 1.4.1 Production Possibility Curves Ppc Questions
Practise Cambridge IGCSE Economics by defining and interpreting production possibility curves and attainable output combinations.
- Syllabus
- 2027–2029
- Course
- Economics 0455
Exam points
- Define a production possibility curve (PPC) and identify its axes.
- Explain what points inside, on and outside a PPC represent.
- Use a PPC to identify attainable output combinations and the purpose of the curve.
CAIE IGCSE Economics 1.4.1 Production Possibility Curves Ppc Questions question 1
[Maximum number: 2]
In 2022, Paraguay's production possibility curve (PPC) shifted to the right. Paraguay has a mixed economic system. Its government provides merit goods and public goods. The country's private sector is a major producer of shampoo. The firms in the shampoo industry make use of division of labour. There are several firms in the industry, but the number is declining. There is a possibility that soon there may be just one firm in the industry.
Identify what is measured on the axes of a production possibility curve.
Identify what is measured on the axes of a production possibility curve.
(Output of) two types of product (2). Output (1) one type of product (1) another type of product (1).
2
Two types of products may be shown on the axes on a PPC diagram for two marks.
If more than two items are given, consider the first three.
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