The Marope Economy has the capacity to produce the goods and services that are outlined in Table 1 below. You are required to: a. Draw a Production Possibility Frontier (PPF) and list all efficient points of production. b. Marope Economy wishes to produce 520 billion units of consumer goods. Plot this output on the Frontier and state whether this is an efficient point or not. Table 1 – Production Possibilities Output (billions of units per year) Consumer goods Consumer services Part B A B 480 420 0 120 C D 240 0 240 300 Use graphs to demonstrate how the following factors will change the PPF. a. A decrease in migration b. An increase in natural resources c. Changes in technology
The Marope Economy has the capacity to produce the goods and services that are outlined in Table 1 below. You are required to:
a. Draw a
b. Marope Economy wishes to produce 520 billion units of consumer goods. Plot this output on
the Frontier and state whether this is an efficient point or not.
Table 1 – Production Possibilities
Output (billions of units per year) Consumer goods Consumer services
Part B
A B
480 420 0 120
C D
240 0 240 300
Use graphs to demonstrate how the following factors will change the PPF.
a. A decrease in migration
b. An increase in natural resources
c. Changes in technology
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