1.Society's Production Possibilities:

a.Copy from the textbook, the four specific assumptions upon which the production possibilities curve is based? 4 Marks

b.Based on the above production possibility curve above:

i.Which points indicate what the economy can currently produce? 3 Marks, Explain why? 1 Marks

ii.Which point represents the maximum possible production of tubas? 1 Mark, Explain why? 1 Mark

iii.The economy CANNOT produce at which point or points? 2 Marks, Explain why? 1 Marks

iv.In economics, what does efficiency mean? 1 Mark? Which point or points are efficient? 2 Marks

16 Marks Total