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3 marksCentral Problem of Economics

CAPE Economics Unit 1 · 2005 · Paper 1 · Question 2(a)

Production possibilities schedule for pineapples and mangoes.

Using the data in Table 1, plot the production possibilities frontier (PPF).

This question uses a figure or table from the paper — you'll see it when you practise.

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Other parts of this question

  1. 2(b)Mark the coordinate (300, 300) on your drawn diagram.[1 mark]
  2. 2(c)State why the point (300, 300) does not represent an efficient allocation of resources.[1 mark]
  3. 2(d)Explain what the shape of the drawn PPF indicates regarding the opportunity costs of producing an additional unit of pineapples or mangoes.[1 mark]

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