‘SECTION C (30 MARKS) Data Response Questions Answer one question only. Question 1 ‘The table relates to the Toyota and Honda cars of country M. Toyota Honda (units: 000’s) (units: 000's) 0 49 6 42 7 12 35 @ 18 28 24 21 30 14 36 7 42 0 (2) _ Refer to above table, draw the production possibility curve [4 marks] (b) What Is the shape of production possibility curve? Why? [4 marks] (©) __Ifall the resources are used to produce 24,000 units of Toyota cars, what Is the opportunity cost? [3 marks] (d) If country M wants to increase production of Honda cars from 7,000 units to 28,000 units, what is the opportunity cost? [3 marks] (e) State two (2) reasons why the area outside the production possibility curve is unattainable? [3 marks] (f) Based on the diagram in question (a), explain the concept of scarcity, choice, and opportunity cost. [6 marks] (a) __ If the shape of the production possibility curve is bowed outward from the origin, what is the reason? [2 marks) (h) State two (2) reasons why the area inside the production possibility curve although attainable is still inefficient? [3 marks] [2 marks] (1) ~ Under what condition PPC will shift to the left. [TOTAL: 30 MARKS] 4 CO1013/FINAL/NOVI3 Scanned with CamScanner