QUESTION 2 [10 Marks] Read the Extract below and answer the questions that follow. The production possibilities in the table below indicate the potential production of a hypothetical farmer if all his resources are used efficiently. The farmer produces apples and pears. When he uses all his resources to produce apples, he cannot produce pears. When he uses all his resources to produce pears, he cannot produce apples. He does not have enough resources to produce the maximum number of apples and pears. Therefore, the farmer must choose a combination of apples and the maximum number of pears to produce. The most efficient combination with the given resources will be indicated by a production possibility curve (PPC). A PPC is a diagram that shows what combination of two different goods could be produced efficiently given the avallable limited supply of the factors of production. The maximum combinations of apples and pears that the farmer can produce in a year