the economist greg mankiw has written that society faces a trade-off between efficiency and equity. Efficiency means that society is getting the maximum benefits from scarce resources. Equity means that those benefits are distributed fairly among society's members. often, when government policies are designed, these two goals conflict.'

'Explain how a production possibility diagram can be used to illustrate some features of the fundamental economic problem.

[15 marks]

it's a long response question, so it's an essay please.