The table below shows the various possible combinations of military and civilian goods produced by a country, using the available resources and technology. ...
Question 1 Report
The table below shows the various possible combinations of military and civilian goods produced by a country, using the available resources and technology. Use the table to answer the questions that follow.
| Military goods (in toons) | Civilian goods (in toons) |
| 0 | 200 |
| 20 | 160 |
| 40 | 120 |
| 60 | 80 |
| 80 | 40 |
| 100 | 0 |
(a) Draw the production possibility curve (PPC).
(b) Indicate points S and K at which production is not feasible.
(c) Indicate points M and N at which resources are not efficiently utilized.
(d) What does the downward slope of the PPC indicate?
(e) Why is production not feasible at points S and K?
Answer Details
(a) Production Possibility Curve (PPC)
Plot the given combinations of military and civilian goods and join them to form the PPC.
| Military goods (tonnes) | Civilian goods (tonnes) |
|---|---|
| 0 | 200 |
| 20 | 160 |
| 40 | 120 |
| 60 | 80 |
| 80 | 40 |
| 100 | 0 |
(b) Points S and K lie outside the PPC. They are therefore unattainable or not feasible with the available resources and technology.
(c) Points M and N lie inside the PPC. At these points, resources are underutilised and production is inefficient.
(d) The downward slope of the PPC shows that producing more of one type of good requires producing less of the other type. This is the opportunity cost arising from limited resources and technology.
(e) Production at points S and K is not feasible because the country does not have sufficient resources and technological capacity to produce those combinations of military and civilian goods.
Download The App On Google Playstore
Everything you need to excel in your exams
