Adam Danial Bin Akbar

1407A26960

Point on diagram

CAL Group 12
Explanation

Achievable/attainable
Inefficient
Resources are not fully utilised.
Eg. unemployed resources

Achievable/attainable
Efficient
Resources are fully utilised.

Achievable/attainable
Inefficient
Resources are not fully utilised.
Eg. unemployed resources

Achievable/attainable
Inefficient
Resources are not fully utilised.
Eg. unemployed resources

Not Achievable/not attainable

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A PPC shifts to the right if the quality and quantity of resources used in producing both
type of products increases!
If the ability to produce only one type of product increases, the shape of the PPC will
change!
If there is an increase in the productivity of agricultural workers, the amount of
agricultural goods that can be produced will increase!
Diagram below shows the rise in the productive capacity of producing agricultural goods
will pivot out the PPC on the horizontal axis!

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Adam Danial Bin Akbar

1407A26960

CAL Group 12

Based on the above diagram,!

Maximum amount of industrial goods
that can be produced

Remains at C

Maximum amount of agricultural goods

that can be produced

Increases from D to F

If originally, the economy had selected to produce at point B, it would have made G
quantity of industrial goods and H quantity of agricultural goods.!
After the increase in the productivity of agricultural workers, G quantity of industrial
goods could now be combined with a higher level of agricultural goods - I amount.

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