(a) The following table presents the production possibilities schedule for an economy which produces two types of goods,

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A The Following Table Presents The Production Possibilities Schedule For An Economy Which Produces Two Types Of Goods 1 (60.58 KiB) Viewed 42 times

(a) The following table presents the production possibilities schedule for an economy which produces two types of goods, apples and wheat. Production possibilities combinations A Apples (kg) Wheat (kg) 160 B C 0 10 D E F 30 40 20 150 130 100 60 (i) Productive efficiency (ii) Productive inefficiency (iii) Economic growth (i) Draw the production possibilities frontier with apples on the horizontal axis and wheat on the vertical axis by showing points A to F. 50 0 (ii) Suppose the economy is currently producing 20kg of apples and 130kg of wheat. What is the opportunity cost of producing another 10kg of apples? (4 marks) (b) Using production possibilities frontier diagrams, explain the following concepts: (15 marks) (c) State whether the following situations is a study of Macroeconomics or Microeconomics. (i) The effect of import taxes on local automobile industry. (ii) A reduction in the supply of credit by financial institutions. (iii) The effect of inflation on total employment in an economy. (6 marks)