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100 units Capital goods African Country: - - per person China: 70 D 2010 F H G 40 B 2010 E 20 c 1970 1970

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100 units Capital goods African Country: - - per person China: 70 D 2010 F H G 40 B 2010 E 20 c 1970 1970 40 45 50 60 85 100 units Consumption goods per person Figure 1 : Production Possibilities Frontier (PPF) : A comparative analysis Economics is concerned with decisions made under constraining conditions including available resources and associated costs. Assume that you are an economic advisor to your government's ministry of industrial development of an African country that wants to develop a policy programme for its industrial development. You examine the historical production data for your country and compare it to China's. You find two points for each country, which illustrate how the countries' production profiles have changed from 1970 to 2010 as presented in Figure 1 above. The continuous-line PPF's represent China and the broken-line PPF's represent the African Country.Use appropriate points in Figure 1 as examples to explain the following concepts, in no more than four sentences, to your minister of industrial development as they relate to any of the two countries in either one of the years of data: a) Production choices b) Inefficient production c) Unattainable production d) Efficient use of available resources (8 marks)

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