Question

Analyse, using a production possibility curve (PPC) diagram, the effect of an increase in enterprise on an economy.

Answer 1

Answer:

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Answer 2

Answer:

Describe economic growth using a PPC diagram.

Explanation:

Production possibility curve shows all different attainable combinations of the production of two commodities that can be produced in an economy given the resources and technology which are constant and fully utilized. Therefore to achieve any point beyond PPC, there is need for increase in the present supply of resources and technology which leads to an outward shift in PPC as overall production increases which results in economic growth as shown in the diagram.

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