Discuss the three types of business ownership in a market economy. Define and give at least 3 advantages and 3 disadvantages of each type of business.

Explain why societies cannot make a choice above their production possibilities frontier and should not make a choice below it.

What are examples of individual economic agents?

What does a production possibilities frontier illustrate?

Return to the example in Figure 2.4. Suppose there is an improvement in medical technology that enables more healthcare wilt line same amount of resources. How would this affect the production possibilities curve and, in particular, how would it affect the opportunity cost of education? Figure 2.4 Productive and Allocative Efficiency