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1.1 Economic methodology and the economic problem

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Question 4

With no change in the position of the production possibility frontier, a movement from point A to point B illustrates that there has been:

Production possibility frontier diagram showing a movement from point A inside the frontier to point B on the frontier

an increase in the economy's productive potential.

a decline in actual output.

a reduction in the level of spare capacity.

a depreciation of the capital stock.

1.1 Economic methodology and the economic problem Questions

  1. A Level
  2. /Economics
  3. /1.1 Economic methodology and the economic problem