1.4 Production Possibility Curve (PPC) Diagrams · Economics

11 mark

Using all available resources an economy produces different combinations of two types of good, clothes and food, shown on the production possibility curve (PPC) diagram.

What does the PPC indicate?

A.
It is more efficient to produce more of clothes than food.
B.
It is only possible to increase the output of clothes by reducing the output of food.
C.
The best situation is to produce equal units of clothes and food.
D.
The cost of producing a unit of clothes is always higher than the cost of producing a unit of food.

Choose your answer