Question

Choose the correct answer from given options

In the given figure X₁Y₁ and X₂Y₂ are Production Possibility Curves in two different periods T₁ and T₂ respectively for Good X and Good Y. A₁ and A₂ represent actual outputs and P₁ and P₂ represent potential outputs respectively in the two times periods.

The change in actual output of Goods X and Y over the two periods would be represented by a movement from __________. 

Options

• A₂ to P₂

• A₁ to P₂

• P₁ to A₂

• A₁ to A₂

Answer 1

The change in actual output of Goods X and Y over the two periods would be represented by movement from A₁ to A₂.

Hence, the correct answer is A₁ to A_2.