CAIE A-Level Economics 1.5.4 Position Within a PPC

CAIE A-Level Economics 1.5.4 Position Within a PPC
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise interpreting points inside, on and outside a PPC as inefficient, efficient or currently unattainable and explaining movements caused by unemployment or better resource…

How this is tested

  • classify a point on the curve as productively efficient and one beyond it as currently unattainable
  • link a point inside the curve to unemployment, idle resources or productive inefficiency
  • explain why moving from inside to the curve can raise both outputs without opportunity cost

Question 3

[Maximum number: 1]

The production possibility curve shows the maximum potential output of apples and pears for an economy using current resources.

Figure for Question 3 — CAIE A-Level Economics

Which pair of positions identifies an efficient and an inefficient outcome?

A

W and Y

B

W and X

C

X and Z

D

Y and Z