THE WESTMINSTER SCHOOL, Dubai

DEPARTMENT OF BUSINESS STUDIES

TOPIC :_____________ YEAR : ______________ WORKSHEET No.___________

The economic problem

1. Define the phrase ‘production possibility curve’.

2. Fully label the graphs below. Using the graphs, explain how the PPC will be affected by the following scenarios:
a) war breaking out in a country

b) a very dry summer

c) improved education

d) production of more capital goods

e) an economy operating at more than its potential

f) discovery of new technology.

a) b) c)
d) e)