Explain how (if at all) each of the following events affects the location of a country's production possibilities curve: (20 marks)

a. The quality of education increases.

b. The number of unemployed workers increases.

c. A new technique improves the efficiency of extracting copper from ore.

d. A devastating earthquake destroys numerous production facilities.

How does self-interest help achieve society's economic goals? Why are there such a wide variety of desired goods and services in a market system? In what way are entrepreneurs and businesses at the helm of the economy but commanded by consumers?

Why is private property, and the protection of property rights, so critical to the success of the market system? How do property rights encourage

cooperation?

Suppose Natasha currently makes N$50,000 per year working as a manager at a cable TV company. She then develops two possible entrepreneurial business opportunities. In one, she will quit her job to start an organic soap company. In the other, she will try to develop an Internet-based competitor to the local cable company. For the soap-making opportunity, she anticipates annual revenue of N$465,000 and costs for the necessary land, labour, and capital of N$395,000 per year. For the Internet opportunity, she anticipates costs for land, labour, and capital of N$3,250,000 per year as compared to revenues of N$3,275,000 per year. (a) Should she quit her current job to become an entrepreneur? (b) If

she does quit her current job, which opportunity would she pursue?

Why do oligopolies exist? List two oligopolists whose products you own or regularly purchase. What distinguishes oligopoly from the monopolistic competition?

"Competition in quality and service may be just as effective as price competition in giving buyers more for their money." Do you agree? Why? Explain why monopolistically competitive firms frequently prefer nonprice competition to price competition.