CAIE A-Level Economics 1.5.3 PPC Shifts

CAIE A-Level Economics 1.5.3 PPC Shifts
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise drawing and explaining inward, outward or pivoting PPC shifts caused by changes in resource quantity, quality or technology and linking them to productive capacity.

How this is tested

  • draw the original and new PPC with arrows and labels showing the direction of capacity change
  • link an outward or inward shift to resource quantity, resource quality or technological change
  • draw a pivot when productivity changes in one sector rather than shifting both intercepts equally

Question 5

[Maximum number: 1]

The diagram shows a production possibility curve (PPC) for an economy that produces two goods, X and Y . Both goods require labour to produce. The initial position of the PPC is at PPC 0{ }_{0}.

Figure for Question 5 — CAIE A-Level Economics

What is the effect on the PPC following the emigration of a large number of workers?

A

the PPC remains at PPC 0{ }_{0}

B

the PPC shifts from PPC0\mathrm{PPC}_{0} to PPC1\mathrm{PPC}_{1}

C

the PPC shifts from PPC0\mathrm{PPC}_{0} to PPC2\mathrm{PPC}_{2}

D

the PPC shifts from PPC0\mathrm{PPC}_{0} to PPC3\mathrm{PPC}_{3}