a. The Circular Flow Diagram (CFD) is one of a model to explain the behavior/relationship between consumer and producer. It shows the movement of the factor of productions, goods and services and the dollars. Illustrate and explain the situation of the movement for the market of factor of production and goods & services based on your own examples. (6M)b. The Production Possibilities Frontier (PPF) is the maximum production that the market can produce when the technology and resources is being fully utilized. Illustrate and explain the movement of the PPF with the changes in: i) both production (increasing of technology). (2M) ii) one production (decreasing of labor). (2M)

Question 1 a. The Circular Flow Diagram (CFD) is one of a model to explain the behavior/relationship between consumer and producer. It shows the movement of the factor of productions, goods and services and the dollars. Illustrate and explain the situation of the movement for the market of factor of production and goods & services based on your own examples. (6M) b. The Production Possibilities Frontier (PPF) is the maximum production that the market can produce when the technology and resources is being fully utilized. Illustrate and explain the movement of the PPF with the changes in: i) both production (increasing of technology). (2M) ii) one production (decreasing of labor). (2M) (10 Marks)