O Levels Economics (2281)•2281/11/M/J/25

Explanation
Shifting along PPC to favor manufactured goods
Steps:
- PPC illustrates trade-offs between agricultural and manufactured goods with full resource use.
- Policy aims to increase manufactured goods, decreasing agricultural output.
- Movement must be along the curve from a point with more agriculture to one with more manufactured goods.
- Assuming standard PPC (agriculture on x-axis, manufactured on y-axis), identify direction from X (higher agriculture) to W (higher manufactured).
Why C is correct:
- X to W moves rightward/upward along PPC, increasing manufactured goods per economic definition of opportunity cost trade-off.
Why the others are wrong:
- A: W to X decreases manufactured goods, opposing policy.
- B: W to Y likely shifts to even less manufactured or inefficient point.
- D: Z to X moves toward more agriculture, reducing manufactured output.
Final answer: C
Topic: Production possibility curve (PPC) diagrams
Practice more O Levels Economics (2281) questions on mMCQ.me