Question

(20 Marks) QUESTION With the aid of a fully labelled diagram, draw a Production Possibility Frontier (PPF) for an economy producing computers and pizzas. Use the diagram to explain the concepts of choice, scarcity and opportunity costs. (10 marks) 4.1 2 With reference to the diagram in question 4.1, distinguish between 'efficiency' and 'inefficiency. (4 marks) With the aid of a separate diagram, illustrate and explain what would happen if there was a discovery of an improved technique for producing pizzas. 4.3 6 marks)

Answer 1

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