In the diagram, what does the production possibility line PQ illustrate?

0455_w14_qp_13

MCQ

2014

Paper 1, Variant 3

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The diagram shows a production possibility curve for an economy that can provide financial services or agricultural products. The economy is at point X. Bad weather destroys part of the agricultural produce. At which point will the economy be in the diagram?

0455_w15_qp_11

MCQ

2015

Paper 1, Variant 1

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The diagram shows a production possibility curve for maize and cotton. maize cotton O Q S P R Bad weather causes a poor harvest for both crops. Which movement could be used to represent this change?

0455_w16_qp_12

MCQ

2016

Paper 1, Variant 2

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In 2014 private companies began to drill in areas of the country to exploit natural gas supplies that were known to exist. manufactured goods gas supplies O R V S T U How might this decision be represented on the diagram which shows a production possibility curve for the country?

0455_w16_qp_13

MCQ

2016

Paper 1, Variant 3

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A country is operating at point X on its production possibility curve (PPC). A drought significantly reduces agricultural output. Which point represents the new position?

0455_w17_qp_11

MCQ

2017

Paper 1, Variant 1

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The diagram shows a production possibility curve diagram. A country’s initial position is X. services O manufacturing R T S X Better manufacturing processes are introduced and the country improves its tourist facilities. What would represent this?

0455_w17_qp_13

MCQ

2017

Paper 1, Variant 3

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The diagram shows the production possibility curve (PPC) for an economy. consumer goods capital goods O Y X Z What will happen to the opportunity cost of producing more units of consumer goods in terms of capital goods as the economy moves down its PPC from point X to point Z?

0455_w18_qp_11

MCQ

2018

Paper 1, Variant 1

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The diagram shows a production possibility curve (PPC) for an economy. output of S output of R O Y W Z X Which change on the diagram could represent an increase in unemployment?

0455_w18_qp_13

MCQ

2018

Paper 1, Variant 3

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Countries X and Y have identical resources. The diagram shows their production possibility curves. O food drink X Y What can be concluded from the diagram?

0455_w19_qp_11

MCQ

2019

Paper 1, Variant 1

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The diagram shows the production possibility curve (PPC) of an economy producing at point X. capital goods consumer goods X What would be the opportunity cost of moving from point X to produce only consumer goods?

0455_w20_qp_13

MCQ

2020

Paper 1, Variant 3

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