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The economic problem

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Question 13

The diagram below shows an asymmetric pivot of an economy's production possibility curve (PPC) from PPC1 PPC_1\,PPC1​ to PPC2PPC_2PPC2​.

Asymmetric PPC pivot

Which of the following statements is correct regarding this change?

The opportunity cost of producing healthcare services has increased.

The opportunity cost of producing digital devices has increased.

The maximum possible output of healthcare services has increased.

The pivot is caused by a reallocation of resources from healthcare services to digital devices.

The economic problem Questions

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