(a) Draw a diagram to show the interaction between households and firms in the product market and the factor market. Describe your diagram briefly. (8 marks)

(b) Sketch the production possibility curve. Using your diagram, explain and illustrate the concept of opportunity cost. (6 marks)

(c) There are two sub-fields in economics, namely; microeconomics and macroeconomics. Explain the difference between them. (6 marks)