Economics Department
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Economics Department |
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Scarcity and choice essays
This week's essay
(a) Explain the fundamental principles of economics which are conveyed by the notion of a production possibility frontier. Why are production possibility frontiers typically drawn as curves concave to the origin of the relevant diagram? (10 marks)
(b) Explain how the concept of economic inefficiency can be illustrated by a production possibility frontier diagram (5 marks)
(c) For what reasons can production possibility frontiers shift from one time period to another? (5 marks)
(d) What might make it possible for an economy to consume a combination of goods represented by points above its given production possibility frontier (5 marks)
Other essays
(a) Explain the economic principles which can be illustrated by a production possibility curve (10 marks)
(b) How and why might PPFs shift outwards? (10 marks) |