A point inside the PPC means some resources are idle or wasted: output is lost.
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The points to remember
- Inside the curve: unemployment of resources, inefficiency.
- Moving to the curve: actual growth, with no opportunity cost.
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When a country gets more or better resources, the whole curve moves out.
What shifts the curve
More resources
Oil is found, migrants arrive, new land is farmed.
Better resources
Education, health care, new technology, new roads.
Lost resources
War, earthquakes, emigration, land lost to the sea.
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Lost resources shift the curve in; a change in one industry moves only its end.
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The points to remember
- Both goods affected: the whole curve shifts.
- One good only: the curve pivots at that end.
Quick reminder
- Axes: one good on each
- Curves: PPC1, and PPC2 when it shifts
- Points: such as U inside the curve, dashed lines to both axes
- Arrow from U to the curve, or from PPC1 to PPC2
- No numbers, no title
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When resources are gained or lost, draw two curves, PPC1 and PPC2, with an arrow between them.
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Paper 2 asks this almost every year, for 4 marks: human capital (November 2025), education, new roads and environmental change (May 2026).
The government will invest heavily in education and training.
Using a production possibilities curve (PPC) diagram, explain the impact of investment in human capital on the country's production possibilities.
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How the 4 marks are given
| Marks | What your answer needs |
|---|---|
| 3–4 | A correct diagram and a correct explanation |
| 1–2 | A correct diagram or a correct explanation, not both |
| 3 at most | A diagram with a wrong or missing label |