Referencing Styles : APA
Question 1 (20 Marks)
Use your own experience and construct a Production Possibility (PPF) for yourself. You are required
to explain all the assumptions you use to develop your PPF. Use your PPF to explain the concepts
of scarcity and opportunity costs. Your answer must indicate and explain efficient, inefficient,
attainable and unattainable points. You are also required to use at least one example to explain the
shift of the PPF.
Question 2 (20 Marks)
Consider the factors affecting to demand and supply as well as price elasticity of demand concepts
to answer this question.
According to Aussie Farmers Direct, number of Australian farmers have been decreased and number
of food importers have been increased recently. Refer to the excerpt below from Aussie Farmers
Direct. Assume the markets for vegies are perfectly competitive and use demand and supply models
for vegie market to explain why “Australia lost 25% of its small-scale vegie farmers….
Question 3 (20 Marks)
Read the following excerpt from www.news.com.au website.
According to the article there are both positive and negative effect on the society from Nintendo’s
Pokemon Go app.
a) Explain why there are likely to be negative external effect associate with the Nintendo’s
Pokemon Go app.
b) Discuss how does the negative externality make the market outcomes inefficient.