Case-1 Production Possibility Curve (PPC) is a graph that shows alternative ways to use an economy's resources. It is a model of a macro economy used to analyze the production decisions in the economy and the problem of scarcity. An opportunity cost is the benefit we forgo for the best alternative resources. The economy of Nigeria is a middle-income, mixed economy and emerging market, with expanding manufacturing, financial, service, communications, technology and entertainment sectors. It is raned as the 27th-largest economy in the world in terms of nominal GDP. Production possibility curve of Nigeria is given below. Assume that the country produces two goods- Rice and clothes using the available resources and technology. X-axis represent food and Y-axis represent clothes. Various combinations of goods are marked and PPC is drawn. Point Point A Point B 10 20 30 40 Question-1 i) Identify the point that shows the best possible combination of goods that Nigeria can produce. (1 marks) ii) Can Nigeria choose a combination at point C? Justify your answer (2 mark) iii) How the problem of What to produce can be solved using the concept of PPC? (3 marks) iv) If Nigeria is producing at point A, how much quantity of food and clothes will be produced in the country. (2 marks) v) How the concept of PPC is useful in explaining the problem of scarcity of resources in countries like Nigeria (2 marks) 3 Page