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A Level
Economics AQA
Question bank

1.1 Economic methodology and the economic problem

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Question 7

The diagram below shows two production possibility frontiers, $PPF_1\,$ and $PPF_2$ , for an economy producing capital goods and consumer goods.

PPF Diagram

Which of the following movements illustrates both an increase in the economy's productive capacity and a decrease in its spare capacity?

Movement from Point $V$ to Point $W$

Movement from Point $U$ to Point $V$

Movement from Point $U$ to Point $W$

Movement from Point $V$ to Point $U$

1.1 Economic methodology and the economic problem Questions

A Level
Economics
1.1 Economic methodology and the economic problem