CAIE IGCSE Economics 1.4.1 Production possibility curves (PPC)
Practise defining a PPC, labelling its axes, and using the curve to show maximum combinations of two products with given resources.
- Syllabus
- 2027–2029
- Course
- Economics 0455
Exam points
- define a PPC as maximum output combinations with given resources and technology
1.4.1—Production possibility curves (PPC) 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.
All question bank results loaded