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A-Level Economics · PPF outward shift (economic growth) diagram question

George Chantry, professional A-Level Economics tutor

Which point was UNATTAINABLE before the growth, but is attainable once the frontier has shifted out to PPF2?

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The diagram

PPF outward shift (economic growth) diagram for A-Level Economics on a labelled grid, every point lettered

The answer

Point B. B is beyond the old frontier: at 7 consumer goods, PPF1 offered no capital goods at all. Only growth gets you there. Ask of every point: which side of PPF1 is it on? B lies OUTSIDE PPF1 but ON PPF2 — unreachable yesterday, reachable today. That is exactly what an outward shift means. M lies outside BOTH frontiers, so it is still out of reach.

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This is one of 5 questions on the ppf outward shift (economic growth) diagram — every corner lettered, every wrong answer diagnosed.

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