O Levels Economics (2281)•2281/12/M/J/23

Explanation
Outward Shift of the Production Possibility Curve Steps:
- An outward shift in the PPC occurs when a country's productive capacity increases due to more or better resources or technology.
- Better education improves worker skills and human capital, expanding maximum output: true.
- Higher investment adds to physical capital stock, allowing more production: true.
- Lower unemployment reduces idle labor, moving the economy from inside the PPC toward the frontier but not shifting the curve itself: false. Why D is correct:
- Not enough information; D is incomplete, but assuming it matches the true/true/false pattern, it aligns with PPC shift definition as changes in potential output, not utilization. Why the others are wrong:
- A: Wrongly labels better education as false, ignoring its role in enhancing productivity.
- B: Wrongly labels higher investment as false, overlooking capital's impact on capacity.
- C: Correctly identifies unemployment effect but listed as option; if D is equivalent, see above.
Final answer: C
Topic: Production possibility curve (PPC) diagrams
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