Block TypeKnowledge Checkpoint‣Describe, using a diagram, what is meant by an increase in the ‘productive potential’ of an economy. (worth 3 marks)DiagramCorrectly labelled production possibility curve (PPC) (1).Indication of outward shift (either new curve or arrows or letters) (1).DescriptionThe outward shift represents economic growth (1).The economy is capable of producing a greater value ofconsumer and capital goods (1).Existing resources are being used more efficiently (1).New resources have been discovered (1).Advances in technology increase efficiency (1).(From Higher Economics Specimen only paper Q1(f))
