May/June 2026 Paper 12

2026 · 30 questions · 30 parts · 30 marks

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3Production Possibility Curves Growth Trade OffsMedium1 mark
In the diagram, JK is an economy's original production possibility curve (PPC).
a production possibility curve diagram with agricultural goods on the vertical axis and manufactured goods on the horizontal axis: the original curve runs from J on the vertical axis, curving down to K on the horizontal axis; a second curve, drawn inside it, runs from the same point J down to a point L on the horizontal axis, to the left of K
What can cause the PPC to shift from JK to JL?