CAIE A-Level Economics 1.5.1 Production Possibility Curve

CAIE A-Level Economics 1.5.1 Production Possibility Curve
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise defining a PPC as maximum attainable output combinations from current resources and technology and using it to explain scarcity, choice and productive efficiency.

How this is tested

  • draw a downward-sloping PPC with both output axes labelled and identify maximum combinations
  • explain scarcity because combinations beyond the curve are unattainable with current capacity
  • show choice and opportunity cost as resources move between two outputs along the curve

Question 4

[Maximum number: 1]

What does a production possibility curve show?

A

the actual demand in an economy given its existing resources

B

the maximum output an economy can achieve using existing resources

C

the maximum output an economy can ever achieve

D

the minimum combinations of output an economy can achieve