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shift shows that the economy can produce more at every combination of the two goods, indicating increased productive potential and therefore economic growth."},{"text":"Economic decline - an outward shift of the whole PPC.","correct":false,"explanation":"Decline is associated with an inward PPC shift, caused by lost resources or productive capacity. Moving outward instead shows economic growth and greater potential output."},{"text":"Inflation - an outward shift of the whole PPC.","correct":false,"explanation":"Inflation concerns a sustained rise in the general price level, not the economy’s production frontier. An outward shift represents economic growth through increased productive capacity."},{"text":"Full employment - an outward shift of the whole PPC.","correct":false,"explanation":"Full employment describes using available resources, whereas an outward shift changes the economy’s capacity. The correct interpretation is economic growth from greater productive potential."}]},{"id":"5ada448a-f7f3-4502-b94d-d1d21c83f42d","cardType":"basic","points":1,"front":"What does a shift of the whole PPC change?","back":"It increases the economy's maximum possible output.","mcqOptions":[{"text":"It increases the economy's maximum possible output.","correct":true,"explanation":"The whole PPC marks the maximum combinations the economy can produce with its resources and technology, so an outward shift raises maximum possible output."},{"text":"It decreases the economy's maximum possible output.","correct":false,"explanation":"A decrease in maximum possible output would result from an inward shift, such as resource loss. An outward shift increases the economy’s maximum possible output."},{"text":"It increases the economy's actual output.","correct":false,"explanation":"The PPC shows potential rather than necessarily achieved production. A shift changes maximum possible output; actual output may remain below the frontier because resources are unemployed."},{"text":"It increases the economy's consumer demand.","correct":false,"explanation":"Consumer demand concerns willingness and ability to buy, not productive capacity. A whole PPC shift increases maximum possible output through more or better resources or technology."}]},{"id":"f61d236f-d482-4e06-ac19-ef476d57d095","cardType":"basic","points":1,"front":"What does movement along a PPC do instead of changing capacity?","back":"A movement along the PPC only reallocates existing productive capacity.","mcqOptions":[{"text":"A movement along the PPC only reallocates existing productive capacity.","correct":true,"explanation":"The economy moves between different combinations on the same frontier, changing the allocation of its resources without increasing or decreasing total productive capacity."},{"text":"A movement along the PPC only increases total productive capacity.","correct":false,"explanation":"Moving along a fixed PPC changes the combination produced but not the frontier itself. Only a shift changes capacity; the correct description is reallocating existing productive capacity."},{"text":"A movement along the PPC only reduces total productive capacity.","correct":false,"explanation":"A movement along the frontier does not reduce the economy’s capacity. It represents choosing a different output combination by reallocating existing productive capacity."},{"text":"A movement along the PPC only eliminates opportunity cost.","correct":false,"explanation":"Opportunity cost remains because producing more of one good requires sacrificing some of the other. Movement along the PPC only reallocates existing productive capacity."}]},{"id":"84ec7d32-b6ff-4262-82f8-1af09bfa73e2","cardType":"basic","points":1,"front":"What does an outward shift allow an economy to produce?","back":"An outward shift allows more output of both goods.","mcqOptions":[{"text":"An outward shift allows more output of both goods.","correct":true,"explanation":"When the whole PPC shifts outward, the economy has greater productive capacity, making higher output of either good possible, including more of both goods."},{"text":"An outward shift allows more output of one good only.","correct":false,"explanation":"A whole-frontier outward shift expands the feasible combinations for both goods. More of one good only may result from movement along the existing PPC, not this shift."},{"text":"An outward shift allows more output of neither good.","correct":false,"explanation":"An outward shift expands productive possibilities rather than leaving them unchanged. It allows the economy to produce more output of both goods."},{"text":"An outward shift allows more output of one good but less of the other.","correct":false,"explanation":"This trade-off describes movement along a PPC, where resources are reallocated. A whole-frontier outward shift expands capacity and allows more output of both goods."}]},{"id":"d1bf230b-1df4-49c1-90b9-ccdccf78b0af","cardType":"basic","points":1,"front":"What does an inward shift mean for possible output?","back":"An inward shift means the economy can produce less of both goods.","mcqOptions":[{"text":"An inward shift means the economy can produce less of both goods.","correct":true,"explanation":"An inward shift shows that the economy’s productive frontier has contracted, so its maximum feasible output of both goods is lower than before."},{"text":"An inward shift means the economy can produce less of one good only.","correct":false,"explanation":"A whole-frontier inward shift reduces feasible production combinations for both goods. A change affecting only one good would not describe the stated consequence."},{"text":"An inward shift means the economy can produce more of both goods.","correct":false,"explanation":"More output of both goods requires an outward shift caused by increased capacity. An inward shift indicates reduced productive capacity and less possible output of both goods."},{"text":"An inward shift means the economy can produce the same amount of both goods.","correct":false,"explanation":"Unchanged production possibilities would mean the PPC had not shifted. Moving inward reduces productive capacity, so the economy can produce less of both goods."}]},{"id":"e9325f11-2f85-4cdd-af91-4988b42e54a2","cardType":"basic","points":3,"front":"What three factors can shift a PPC?","back":"Shifts result from changes in resource quantity, resource quality, or technology.","mcqOptions":[{"text":"Shifts result from changes in resource quantity, resource quality, or technology.","correct":true,"explanation":"More resources, better-quality resources and improved technology each increase or decrease what the economy can produce, shifting the PPC outward or inward."},{"text":"Shifts result from changes in resource price, resource demand, or competition.","correct":false,"explanation":"Prices, demand and competition can affect incentives or allocation but are not the three direct causes listed for shifting the PPC. The correct factors are quantity, quality and technology."},{"text":"Shifts result from changes in resource quantity, resource price, or taxation.","correct":false,"explanation":"Resource price and taxation may influence production decisions without changing the economy’s frontier. PPC shifts result from changes in resource quantity, quality or technology."},{"text":"Shifts result from changes in resource quality, resource cost, or demand.","correct":false,"explanation":"Cost and demand are market factors rather than direct changes in productive potential. The relevant causes are resource quantity, resource quality and technology."}]},{"id":"f771858e-f9bc-4038-97cb-ff647591a1ff","cardType":"basic","points":2,"front":"Why can net immigration shift the PPC outward?","back":"Net immigration enlarges the workforce, increasing productive capacity.","mcqOptions":[{"text":"Net immigration enlarges the workforce, increasing productive capacity.","correct":true,"explanation":"When immigration exceeds emigration, the workforce grows. More available labour increases the economy’s resources and can expand productive capacity, shifting the PPC outward."},{"text":"Net emigration enlarges the workforce, increasing productive capacity.","correct":false,"explanation":"Net emigration means more people leave than enter, reducing the workforce rather than enlarging it. Net immigration increases labour resources and can shift the PPC outward."},{"text":"Higher unemployment enlarges the workforce, increasing productive capacity.","correct":false,"explanation":"Higher unemployment leaves more existing workers unused; it does not enlarge the workforce or productive resources. Net immigration increases the available labour force and capacity."},{"text":"Lower productivity enlarges the workforce, increasing productive capacity.","correct":false,"explanation":"Lower productivity means resources produce less output and would tend to reduce capacity. Net immigration enlarges the workforce, increasing the economy’s productive potential."}]},{"id":"4eed0cf0-2ff4-48d6-90d6-237eb9a27ecb","cardType":"basic","points":2,"front":"How can discovering an oil field cause an outward PPC shift?","back":"A newly discovered oil field increases the quantity of resources available.","mcqOptions":[{"text":"A newly discovered oil field increases the quantity of resources available.","correct":true,"explanation":"An oil discovery adds usable natural resources to the economy. This increases the quantity of available resources, expanding productive capacity and shifting the PPC outward."},{"text":"A newly discovered oil field increases the quality of resources available.","correct":false,"explanation":"Discovering an oil field adds an additional physical resource rather than improving an existing resource’s quality. The correct effect is an increase in the quantity of resources available."},{"text":"A newly discovered oil field increases the technology of resources available.","correct":false,"explanation":"Technology refers to the methods and equipment used in production, not the amount of oil underground. The discovery increases resource quantity and therefore productive capacity."},{"text":"A newly discovered oil field increases the price of resources available.","correct":false,"explanation":"The discovery may affect oil prices, but price is not the direct PPC cause identified here. Adding an oil field increases the quantity of available resources."}]},{"id":"001a4f3a-577e-43ba-b9fc-ec0b02f07f63","cardType":"basic","points":2,"front":"Why can better schooling shift the PPC outward?","back":"Better schooling raises worker productivity, increasing productive capacity.","mcqOptions":[{"text":"Better schooling raises worker productivity, increasing productive capacity.","correct":true,"explanation":"Education improves workers’ skills and efficiency, allowing the economy to produce more with its existing resources. This raises productive capacity and shifts the PPC outward."},{"text":"Better schooling raises consumer demand, increasing productive capacity.","correct":false,"explanation":"Higher demand affects the level of output chosen, not the economy’s maximum productive capacity. Better schooling shifts the PPC outward by raising worker productivity."},{"text":"Better schooling reduces worker productivity, increasing productive capacity.","correct":false,"explanation":"A reduction in productivity would lower maximum output and tend to shift the PPC inward. Schooling raises worker productivity, which increases productive capacity."},{"text":"Better schooling increases the quantity of land, increasing productive capacity.","correct":false,"explanation":"Schooling does not create more land, so this confuses human capital with a natural resource. The outward shift results from higher worker productivity."}]},{"id":"a8d713c9-008d-4f0a-a29b-f92b031cfe50","cardType":"basic","points":2,"front":"How can a healthier workforce shift the PPC outward?","back":"A healthier workforce improves the quality of labour, raising output per worker.","mcqOptions":[{"text":"A healthier workforce improves the quality of labour, raising output per worker.","correct":true,"explanation":"Better health can increase workers’ stamina, attendance and effectiveness. This improves the quality of labour and raises output per worker, increasing productive capacity."},{"text":"A healthier workforce increases the quantity of labour, raising output per worker.","correct":false,"explanation":"Health mainly improves how effectively workers perform rather than directly increasing the number of workers. The relevant change is improved labour quality, which raises output per worker."},{"text":"A healthier workforce reduces the quality of labour, raising output per worker.","correct":false,"explanation":"Reduced labour quality would make workers less productive and lower output per worker. A healthier workforce improves labour quality and increases productive capacity."},{"text":"A healthier workforce improves the quality of capital, raising output per worker.","correct":false,"explanation":"Health interventions affect people rather than machinery or equipment. The outward PPC shift comes from improved quality of labour and consequently higher output per worker."}]},{"id":"a4aead62-fcb2-4cfc-9311-c1c47bae5c7c","cardType":"basic","points":2,"front":"Why do technological advances shift the PPC outward?","back":"Technology enables more output from the same resources.","mcqOptions":[{"text":"Technology enables more output from the same resources.","correct":true,"explanation":"Technological progress makes existing resources more productive, allowing greater output from the same quantities of inputs. This increases productive capacity and shifts the PPC outward."},{"text":"Demand enables more output from the same resources.","correct":false,"explanation":"Demand influences what producers choose to make, but it does not make resources more productive. Technology enables greater output from the same resources and shifts the PPC outward."},{"text":"Inflation enables more output from the same resources.","correct":false,"explanation":"Inflation changes the general price level rather than the economy’s physical production potential. Technological progress, not inflation, enables more output from unchanged resources."},{"text":"Specialisation prevents more output from the same resources.","correct":false,"explanation":"Specialisation can improve efficiency, so saying it prevents additional output reverses its likely effect. The specific factor identified here is technology, which raises output from the same resources."}]},{"id":"e9b2f6b7-a2bf-4997-973a-0e60bfb63c66","cardType":"basic","points":2,"front":"How does investment in new capital goods affect future productive capacity?","back":"Investment increases the future stock of capital goods, raising productive capacity.","mcqOptions":[{"text":"Investment increases the future stock of capital goods, raising productive capacity.","correct":true,"explanation":"Investment adds machinery, buildings and equipment to the capital stock. Once available, these capital goods allow the economy to produce more, increasing future productive capacity."},{"text":"Investment decreases the future stock of capital goods, raising productive capacity.","correct":false,"explanation":"Investment involves adding to, not reducing, the capital stock. A larger future stock of capital goods raises the economy’s productive capacity."},{"text":"Investment increases the future stock of consumer goods, raising productive capacity.","correct":false,"explanation":"Consumer goods satisfy current consumption, whereas investment creates capital goods used in future production. It is the increased stock of capital goods that raises productive capacity."},{"text":"Investment increases the future stock of capital goods, lowering productive capacity.","correct":false,"explanation":"A larger capital stock normally expands the economy’s ability to produce, rather than lowering it. Investment therefore raises future productive capacity through additional capital goods."}]},{"id":"17ef0db9-0b8e-416f-914e-ae1d843a3e69","cardType":"basic","points":1,"front":"What is the opportunity cost of producing more capital goods today?","back":"The opportunity cost is fewer consumer goods now.","mcqOptions":[{"text":"The opportunity cost is fewer consumer goods now.","correct":true,"explanation":"Resources used to produce capital goods cannot simultaneously produce consumer goods. The opportunity cost of higher current investment is therefore fewer consumer goods available now."},{"text":"The opportunity cost is more consumer goods now.","correct":false,"explanation":"Producing more capital goods diverts resources away from current consumption, so current consumer goods fall. More consumer goods now would be the opposite outcome."},{"text":"The opportunity cost is fewer capital goods in the future.","correct":false,"explanation":"Producing capital goods today generally increases the future capital stock, rather than reducing it. The immediate sacrifice is fewer consumer goods available now."},{"text":"The opportunity cost is more leisure time now.","correct":false,"explanation":"This choice concerns the trade-off between capital goods and consumer goods in current production. The relevant opportunity cost is fewer consumer goods now, not leisure."}]},{"id":"40c4e3ae-765d-47f6-863c-c92c3e82f935","cardType":"basic","points":2,"front":"How can a shrinking workforce cause an inward PPC shift?","back":"A fall in resource quantity, such as a shrinking workforce, shifts the PPC inward.","mcqOptions":[{"text":"A fall in resource quantity, such as a shrinking workforce, shifts the PPC inward.","correct":true,"explanation":"A smaller workforce means fewer labour resources are available for production. This reduces the economy’s maximum possible output and shifts its PPC inward."},{"text":"A rise in resource quantity, such as a growing workforce, shifts the PPC inward.","correct":false,"explanation":"A growing workforce increases available labour and normally expands productive capacity, shifting the PPC outward. An inward shift follows a fall in resource quantity, such as a shrinking workforce."},{"text":"A fall in resource quality, such as a more skilled workforce, shifts the PPC inward.","correct":false,"explanation":"A more skilled workforce improves labour quality and raises productive capacity, tending to shift the PPC outward. A shrinking workforce is a fall in resource quantity."},{"text":"A fall in resource quantity, such as a shrinking workforce, shifts the PPC outward.","correct":false,"explanation":"Fewer workers reduce the resources available for production, so maximum output falls. The resulting PPC shift is inward, not outward."}]},{"id":"60dac171-a9cb-4736-b9c7-d9296e770009","cardType":"basic","points":2,"front":"Why can war or an earthquake shift the PPC inward?","back":"War or earthquakes can destroy factories and roads, reducing resource quality.","mcqOptions":[{"text":"War or earthquakes can destroy factories and roads, reducing resource quality.","correct":true,"explanation":"Destroyed infrastructure and capital goods leave the remaining resources less capable of supporting production. This reduction in resource quality lowers productive capacity and shifts the PPC inward."},{"text":"War or earthquakes can destroy factories and roads, increasing resource quality.","correct":false,"explanation":"Destruction damages infrastructure and capital, making resources less productive rather than better. War or earthquakes reduce resource quality, causing productive capacity to fall."},{"text":"War or earthquakes can destroy factories and roads, increasing resource quantity.","correct":false,"explanation":"Physical destruction does not increase the amount of available infrastructure or capital. The relevant effect is reduced resource quality, which shifts the PPC inward."},{"text":"War or earthquakes can destroy factories and roads, reducing resource productivity.","correct":false,"explanation":"Lower productivity describes the consequence, but the specified resource change is reduced quality. The destruction of factories and roads reduces resource quality and therefore productive capacity."}]},{"id":"9e2b451b-3b82-4095-8cea-8b6d58d26434","cardType":"basic","points":2,"front":"Why does failing to replace worn-out capital reduce productive capacity?","back":"Failure to replace worn-out capital causes the stock of machinery to shrink.","mcqOptions":[{"text":"Failure to replace worn-out capital causes the stock of machinery to shrink.","correct":true,"explanation":"When depreciation is not offset by replacement investment, worn-out machinery leaves the capital stock. Fewer machines reduce productive capacity and can shift the PPC inward."},{"text":"Failure to replace worn-out capital causes the stock of machinery to expand.","correct":false,"explanation":"Unreplaced depreciation removes machinery from the capital stock, so the stock cannot expand through this process. It shrinks, reducing productive capacity."},{"text":"Failure to replace worn-out capital causes the stock of machinery to remain constant.","correct":false,"explanation":"The stock would remain constant only if new investment exactly replaced depreciated machinery. Failure to replace worn-out capital causes the machinery stock to shrink."},{"text":"Failure to replace worn-out capital causes the stock of machinery to improve.","correct":false,"explanation":"Worn-out machinery becomes less effective and is not upgraded when replacement is neglected. The resulting depreciation causes the stock of machinery to shrink."}]},{"id":"aff57d59-4a09-40da-900e-0c7949b168b6","cardType":"basic","points":1,"front":"In a PPC diagram, what represents economic growth?","back":"An outward PPC shift represents economic growth.","mcqOptions":[{"text":"An outward PPC shift represents economic growth.","correct":true,"explanation":"Economic growth increases an economy’s productive capacity, so the maximum attainable combinations of both goods expand and the entire PPC shifts outward."},{"text":"A movement along the PPC represents economic growth.","correct":false,"explanation":"A movement along the curve reallocates existing resources between two goods; it does not increase productive capacity. Economic growth is represented by an outward PPC shift."},{"text":"An inward PPC shift represents economic growth.","correct":false,"explanation":"An inward shift shows that productive capacity has decreased, perhaps following resource loss or destruction. Economic growth instead expands capacity and shifts the PPC outward."},{"text":"A point inside the PPC represents economic growth.","correct":false,"explanation":"A point inside the curve indicates unemployed or inefficiently used resources rather than greater capacity. Economic growth increases potential output and is shown by an outward PPC shift."}]},{"id":"45106c5e-86e2-4570-a3a7-810b44eac5ff","cardType":"basic","points":2,"front":"How can an economy producing inside its PPC increase output without a shift?","back":"Idle resources can be employed to raise output without shifting the PPC.","mcqOptions":[{"text":"Idle resources can be employed to raise output without shifting the PPC.","correct":true,"explanation":"Production inside the PPC indicates spare or inefficiently used resources. Employing these resources raises actual output towards the existing frontier without changing the economy’s productive capacity."},{"text":"Imported resources can be employed to raise output without shifting the PPC.","correct":false,"explanation":"Additional imported resources may increase the economy’s productive capacity and shift its PPC. Output can rise within the existing PPC by employing resources that are currently idle."},{"text":"New technology can be employed to raise output without shifting the PPC.","correct":false,"explanation":"Improved technology normally raises productive capacity and therefore shifts the PPC outward. An economy already inside its PPC can increase output by putting idle resources to work."},{"text":"Consumer resources can be employed to raise output without shifting the PPC.","correct":false,"explanation":"Consumers are not a category of unused productive resources that explains movement towards the frontier. The economy raises output without a shift by employing idle land, labour, or capital."}]},{"id":"58fef264-c786-4999-95b8-ddaa9efbc5cb","cardType":"basic","points":2,"front":"Why might a PPC shift unevenly?","back":"A change affecting one good more than the other causes an uneven shift.","mcqOptions":[{"text":"A change affecting one good more than the other causes an uneven shift.","correct":true,"explanation":"When a change improves productive capacity for one good disproportionately, that good’s maximum output rises by more, causing the PPC to pivot or shift unevenly."},{"text":"A change affecting both goods by the same amount causes an uneven shift.","correct":false,"explanation":"An equal increase in productive capacity for both goods would produce a broadly parallel outward shift. An uneven shift occurs when one good is affected more than the other."},{"text":"A reallocation from one good to the other causes an uneven shift.","correct":false,"explanation":"Reallocating resources changes the production point along an unchanged PPC rather than shifting the frontier. An uneven shift results from a capacity change affecting one good more strongly."},{"text":"A fall in demand for one good causes an uneven shift.","correct":false,"explanation":"A demand change may alter the chosen production combination, but the PPC represents productive capacity, not demand. It shifts unevenly when productive potential changes more for one good."}]},{"id":"3b239eb9-670f-41df-a95c-bbcbe824c892","cardType":"basic","points":2,"front":"What happens to the PPC when technology improves only in farming?","back":"A farm-technology breakthrough can pivot the PPC outward on the food axis while the other maximum stays unchanged.","mcqOptions":[{"text":"A farm-technology breakthrough can pivot the PPC outward on the food axis while the other maximum stays unchanged.","correct":true,"explanation":"Farming-specific technology increases the maximum quantity of food that can be produced without increasing the maximum output of the other good, so the PPC pivots outward on the food axis."},{"text":"A farm-technology breakthrough can pivot the PPC outward on the other-good axis while the food maximum stays unchanged.","correct":false,"explanation":"This reverses which sector benefits from the breakthrough. Farming technology raises maximum food output, so the PPC pivots outward on the food axis while the other maximum remains unchanged."},{"text":"A farm-technology breakthrough can pivot the PPC inward on the food axis while the other maximum stays unchanged.","correct":false,"explanation":"An inward pivot would imply that farming capacity had fallen. A farming breakthrough increases productivity, moving the food-axis intercept outward while leaving the other good’s maximum unchanged."},{"text":"A farm-technology breakthrough can shift the PPC outward on both axes while both maximums rise equally.","correct":false,"explanation":"This assumes that sector-specific technology benefits all production equally. If only farming improves, maximum food output rises, but the other good’s maximum output does not change."}]},{"id":"1b302538-f18a-44ac-9e90-ba32f1646ca6","cardType":"cloze","points":null,"front":"An outward PPC shift raises [ ] because more goods can be produced.","back":"An outward PPC shift raises potential living standards because more goods can be produced.","mcqOptions":[{"text":"potential living standards","correct":true,"explanation":"An outward PPC shift increases the economy’s maximum possible output. This creates the capacity to provide more goods and services, thereby raising potential living standards."},{"text":"current unemployment levels","correct":false,"explanation":"Greater productive capacity does not itself raise unemployment, and its effect on employment depends on whether capacity is used. The direct consequence is higher potential living standards."},{"text":"existing opportunity costs","correct":false,"explanation":"Opportunity cost concerns the output sacrificed when resources are reallocated and need not rise after a shift. An outward PPC raises potential living standards by permitting more production."},{"text":"actual inflation rates","correct":false,"explanation":"A larger productive capacity does not automatically raise inflation, which depends on factors including aggregate demand and costs. It raises potential living standards because more output becomes possible."}]},{"id":"6a5e994f-a778-4bb7-b53c-e02ed6b2474a","cardType":"cloze","points":null,"front":"Extra productive capacity reduces unemployment only if it is [ ].","back":"Extra productive capacity reduces unemployment only if it is put to use.","mcqOptions":[{"text":"put to use","correct":true,"explanation":"Capacity must be used through increased production and employment before it can reduce unemployment. An outward PPC shift alone only shows that greater output is possible."},{"text":"held in reserve","correct":false,"explanation":"Keeping additional capacity unused leaves workers and other resources idle, so unemployment does not fall. Capacity reduces unemployment only when it is put to use."},{"text":"used less efficiently","correct":false,"explanation":"Reduced efficiency wastes productive resources and can keep the economy inside its PPC. Extra capacity lowers unemployment only when firms put it to use in production."},{"text":"removed from production","correct":false,"explanation":"Removing capacity from production cannot create the additional demand for labour needed to reduce unemployment. The new productive capacity must instead be put to use."}]},{"id":"707e523e-4b42-4830-a5e9-4cb9a943f405","cardType":"cloze","points":null,"front":"An inward PPC shift tends to reduce [ ] by lowering potential output.","back":"An inward PPC shift tends to reduce living standards by lowering potential output.","mcqOptions":[{"text":"living standards","correct":true,"explanation":"An inward PPC shift reduces the maximum goods and services available per person. This lower potential output tends to reduce the material living standards an economy can sustain."},{"text":"opportunity costs","correct":false,"explanation":"An inward shift does not necessarily reduce opportunity cost, which depends on the PPC’s shape and relative resource productivity. Lower potential output tends to reduce living standards."},{"text":"unemployment rates","correct":false,"explanation":"Reduced productive capacity may increase rather than reduce unemployment if workers lose productive opportunities. Its central consequence is lower potential output and therefore lower living standards."},{"text":"resource scarcity","correct":false,"explanation":"Scarcity remains because wants exceed available resources, and reduced productive capacity may make it more severe. An inward PPC shift tends to lower living standards by reducing potential output."}]},{"id":"0488671e-5f73-493a-a4c6-4f36f1c90da1","cardType":"cloze","points":null,"front":"An outward shift is necessary but not sufficient for higher living standards because welfare also depends on output [ ].","back":"An outward shift is necessary but not sufficient for higher living standards because welfare also depends on output distribution and environmental cost.","mcqOptions":[{"text":"distribution and environmental cost","correct":true,"explanation":"Higher productive capacity may not improve welfare if additional output is distributed very unequally or creates substantial environmental damage. Both factors affect living standards beyond total potential output."},{"text":"ownership and market price","correct":false,"explanation":"Ownership and prices influence economic decisions, but they do not capture the key welfare qualifications to higher output. Living standards also depend on distribution and environmental cost."},{"text":"specialisation and opportunity cost","correct":false,"explanation":"Specialisation and opportunity cost concern production choices rather than whether growth improves overall welfare. The benefits of additional output depend on its distribution and environmental cost."},{"text":"composition and exchange rate","correct":false,"explanation":"Output composition can matter, but the exchange rate is not the central welfare qualification in this statement. Higher output may fail to improve welfare because of unequal distribution and environmental cost."}]}]}],"examCountdown":null,"heading":"1.5.3 causes and consequences of shifts in a PPC","title":"1.5.3 causes and consequences of shifts in a PPC Flashcards","topbar":{"backHref":"/international-a-level/economics/cie/flashcards"},"topicSidebar":"$L38"}]}],"topicId":"edae6055-ccc6-424e-9b2d-5d4ac0a89ce8","walled":"$L39"}],"$L3a","$L3b"]