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CAIE IGCSE Economics 1.4.3 Movements along a PPC

Practise reading movements along a PPC, deciding which output rises or falls, and calculating opportunity cost from diagram labels.

Syllabus
2027–2029
Course
Economics 0455

Exam points

  • interpret movement along a PPC as reallocating resources between two goods
  • calculate opportunity cost from labelled PPC distances or output changes

1.4.3—Movements along a PPC question 1

[Maximum number: 1]

The diagram shows a production possibility curve (PPC). The economy is using all of its available resources.

Figure for Question 1.4.3—Movements along a PPC question 1 — CAIE IGCSE Economics

A government decides to encourage more production of manufactured goods instead of agricultural goods.

Which movement shows this policy change?

A

W to X

B

W to Y

C

X to W

D

Z to X

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