A country is producing at point X on its production possibility curve (PPC) which shows how it can allocate its production between capital goods and consumer goods.
A period of recession then causes some of its factories to close.
Which point could represent the country's new position?
The diagram shows a production possibility curve (PPC). The economy is using all of its available resources.
A government decides to encourage more production of manufactured goods instead of agricultural goods.
Which movement shows this policy change?
W to X
W to Y
X to W
Z to X
The diagram shows a country's production possibility curve (PPC).
What would cause a movement from point X to point Y ?
decrease in productivity
decrease in unemployment
increase in capital investment
increase in economic growth