In the graph, the PPC moves from PP to PP₁. What has happened? Two PPCs for cars and rice (tonnes). Both start at 40 tonnes of rice. PP ends at 50 cars and PP₁ ends at 65 cars.

In the graph, the PPC moves from PP to PP₁.

Question 47

HardOriginal question

In the graph, the PPC moves from PP to PP₁. What has happened?

Two PPCs for cars and rice (tonnes). Both start at 40 tonnes of rice. PP ends at 50 cars and PP₁ ends at 65 cars.

Technology has improved in growing rice onlyCorrect answerYour answerResources have grown for both goods equallyCorrect answerYour answerTechnology has improved in making cars onlyCorrect answerYour answerResources have become unemployedCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

The maximum rice stays at 40 tonnes, but the maximum cars rise from 50 to 65.
A curve that swings out along one axis only shows progress in producing that good alone.

Concept: Rotation of the PPC
Typical timeTypical: 100 s
Your timeYours: —

The rule this testsThe production possibility curve

Practise this chapter →

Ten questions from Central Problems & the PPC, at your own pace.

Practise this chapter →

Ten questions from Central Problems & the PPC, at your own pace.

In the graph, the PPC moves from PP to PP₁.

Question 47

Explanation