MATSEC IM Economics Practice Questions - Malta Intermediate Matriculation (IM) Economics - IM 08 (2026) Exam

A production possibility curve (PPC) bows outward because

Resources are not equally suited to producing both goods Opportunity cost is always constant as output of one good rises Economies always operate inside the curve Demand for both goods increases at the same rate

Correct Answer:

Resources are not equally suited to producing both goods

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