‌
a. Opportunity‌‌cost‌‌refers‌‌to‌‌the‌‌cost‌‌of‌‌sacrificing‌‌your‌‌choice‌‌over‌‌something.‌‌In‌‌this‌‌case,‌‌  
the‌‌opportunity‌‌cost‌‌that‌‌is‌‌apparent‌‌from‌‌choosing‌‌to‌‌export‌‌more‌‌textiles‌‌would‌‌be‌‌the‌‌  
allocation‌‌of‌‌resources‌‌such‌‌as‌‌labor‌‌and‌‌funding‌‌to‌‌other‌‌sectors‌‌such‌‌as‌‌agriculture.‌‌    ‌
b. The‌‌economic‌‌problem‌‌arises‌‌from‌‌unlimited‌‌wants‌‌versus‌‌limited‌‌resources.‌‌However,‌‌it‌‌  
is‌‌important‌‌to‌‌note‌‌that‌‌once‌‌the‌‌existing‌‌wants‌‌are‌‌fulfilled,‌‌there‌‌is‌‌always‌‌another‌‌
 
want‌‌that‌‌seeks‌‌to‌‌be‌‌satisfied.‌‌With‌‌the‌‌limited‌‌resources,‌‌we‌‌have‌‌to‌‌make‌‌a‌‌choice‌‌  
which‌‌one‌‌to‌‌fulfilled‌‌and‌‌to‌‌give‌‌up.‌  ‌

c. PPC‌‌is‌‌a‌‌diagram‌‌that‌‌shows‌‌the‌‌maximum‌‌amount‌‌of‌‌  
possible‌‌output‌‌in‌‌a‌‌country/business‌‌between‌‌two‌‌goods‌‌when‌‌faced‌‌with‌‌a‌‌limited‌‌  
amount‌‌of‌‌resources.‌‌Those‌‌resources‌‌are‌‌called‌‌factors‌‌of‌‌production-‌‌land,‌‌labor,‌‌  
capital,‌‌enterprise.‌‌
   ‌
 ‌
When‌‌PPC‌‌shrinks,‌‌it‌‌means‌‌there‌‌is‌‌a‌‌reduction‌‌in‌‌the‌‌factors‌‌of‌‌production.‌‌For‌‌instance,‌‌there‌‌  
might‌‌be‌‌a‌‌shortage‌‌of‌‌natural‌‌resources‌‌that‌‌are‌‌used‌‌as‌‌the‌‌main‌‌materials,‌‌and‌‌an‌‌increase‌‌  
in‌‌the‌‌interest‌‌rate‌‌that‌‌causes‌‌higher‌‌payment‌‌when‌‌buying‌‌machinery‌‌that‌‌helps‌‌with‌‌the‌‌  
production‌‌on‌‌credit.‌  ‌
 ‌
The‌‌diagram‌‌shows‌‌that‌‌the‌‌maximum‌‌possibility‌‌to‌‌produce‌‌books‌‌and‌‌wagons‌‌had‌‌shrunk.‌‌  
This‌‌can‌‌be‌‌caused‌‌by‌‌a‌‌reduction‌‌in‌‌factors‌‌of‌‌production‌‌that‌‌affected‌‌both‌‌goods.‌‌For‌ 
instance,‌‌the‌‌government‌‌set‌‌the‌‌retirement‌‌age‌‌that‌‌was‌‌used‌‌to‌‌at‌‌70‌‌years‌‌old,‌‌to‌‌65‌‌years‌‌  
old.‌‌That‌‌means,‌‌people‌‌who‌‌are‌‌65‌‌to‌‌70‌‌years‌‌old,‌‌cannot‌‌work‌‌anymore.‌‌This‌‌causes‌‌the‌‌  
number‌‌of‌‌laborers‌‌that‌‌are‌‌eligible‌‌to‌‌work‌‌to‌‌decrease.‌  ‌