Test your knowledge: Practice the

PPC

ECONOMICS

GRADE 10
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LEARNING OUTCOMES

● Understand how scarce resources limit production.

● Discuss the production possibility curve and factors that have a direct impact

on the PPC.

● Graph a fully labeled PPC.

● Analyse a PPC and interpret what it represents.

INSTRUCTIONS

1. This activity comprises two main questions.

2. Complete all questions in the order that they are presented to you.

3. The possible maximum mark for this assignment is 40.

DECLARATION

I declare that all work in this activity is my own, and that I have indicated any sources I

have consulted, with the exception of the provided learning material. I have not

committed plagiarism as defined in the plagiarism policy.

Qiniso Ndlovu

Student signature

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QUESTION 1

Study the graph below and answer the questions that follow.

Figure 1: An outward movement of the PPC from AB to AC.

Question 1.1 [2 marks]

Define the Production Possibility Curve.

A production possibility curve is a graph which shows or indicates the true maximum

amount of units a company can produce if producing two products and ran efficiently

Question 1.2 [2 marks]

Explain how this curve (the PPC) deals with the problem of scarcity.

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It deals with scarcity by showing the units of food as well as clothes and they both low at

the beginning of the map.

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Question 1.3 [2 marks]

How many units of food and units of clothes are produced at point E?

40 units of food and 90 units of clothes are produced respectively.

Question 1.4 [6 marks]

1.4.1 Identify how many units of food and units of clothing are produced at point F.

1.4.2 Explain whether or not this point is efficient or inefficient and why this is the case.

1.4.1. 10 units of food and 20 units of clothes are produced at point f respectively

Question 1.5 [2 marks]

Identify the maximum amount of food that can be produced when using all available

resources for production.

Type your answer here.

Question 1.6 [2 marks]

Describe the shift taking place from AB to AC.

Type your answer here.

Question 1.7 [6 marks]

Briefly discuss TWO external factors that could change the position of this curve and

give examples of each.

Type your answer here.

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QUESTION 2

Question 2.1 [8 marks]

Identify whether the following examples are internal or external factors that caused

this change. E.g. 2.1.10 Internal.

2.1.1 The prices of crude oil increased and thus the price of production increased in

terms of using machinery becoming less cost effective.

2.1.2 A drought impacted the quality of resources farmed for food production.

2.1.3 A new machine was purchased that could weave fabrics two times faster than the

original machine.

2.1.4 Covid-19 impacted the production process as many workers had to quarantine as

a result of contact with COVID positive people and thus missed many work days.

2.1.5 Taxi strikes on the N2 meant that many workers were unable to get to work and

thus the production process had limited workers on certain days.

2.1.6 Load-shedding stage 4 impacted the levels of productivity in the factories.

2.1.7 New and improved production techniques were used in order to combat the

negative effects of load-shedding.

2.1.8 All workers using the new technology and techniques went to a workshop training

workers with how best to use these new technologies and techniques.

2.1.1. external

2.1.2. external

2.1.3. internal

2.1.4. external

2.1.5. external

2.1.6. internal

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2.1.7. internal

2.1.8. internal

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Question 2.2 [10 marks]

Draw a PPC without any shifts.

Include the following in your graph:

● X axis: Intervals of 5

● Y axis: Intervals of 10

The X axis needs to be labelled: Tons of wheat

The Y axis needs to be labelled: Tons of steel

Plot the following points to help draw your curve:

Points X axis Y axis

Point A 0 70

Point B 15 60

Point C 25 40

Point D 35 0

Type your answer here.

ACTIVITY END