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The economic problem

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Question 36

The diagram below shows the production possibility frontier (PPF) for an economy that produces digital services and physical infrastructure.

Production Possibility Frontier (PPF) showing a movement from point U inside the curve to point V on the curve.

What does a movement from point U U\,U to point V V\,V represent?

An expansion in the economy’s productive potential

A reduction in the level of unemployed resources within the economy

An increase in the opportunity cost of producing digital services

A trade-off where digital services must be sacrificed to obtain more physical infrastructure

The economic problem Questions

  1. A Level
  2. /Economics
  3. /The economic problem