Day: September 18, 2020

Using all available resources an economy produces different combinations of two types of good, clothes and food, shown on the production possibility curve (PPC) diagram.

What does the PPC indicate?

Select ONE answer:

1. It is more efficient to produce more of clothes than food.
2. It is only possible to increase the output of clothes by reducing the output of food.
3. The best situation is to produce equal units of clothes and food.
4. The cost of producing a unit of clothes is always higher than the cost of producing a unit of food.

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS4 and KS5 classes.

The answer is 2

1. Not correct
2. Correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.