SINF6 Economics Practice Questions - Solomon Islands National Form Six Examination - Economics Exam

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A nation's Production Possibility Curve (PPC) illustrates two goods: Timber Output and Fishery Output. If technological improvements enhance tuna processing equipment in Malaita, how will the PPC change?

The PPC will pivot outward along the Fishery axis while remaining unchanged at the Timber axis The entire PPC will shift inward toward the origin The PPC will shift outward parallel along both axes equally The PPC will become a straight downward-sloping line

Correct Answer:

The PPC will pivot outward along the Fishery axis while remaining unchanged at the Timber axis

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