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Use a diagram to show how each of the following events would affect the Production Possibilities Frontier in an economy that produces hemp and tobacco.
Use a diagram to show how each of the following events would affect the Production Possibilities Frontier in an economy that produces hemp and tobacco.
(a) A drought destroys the crop.
(b) New farming technology increases yields per acre.
(c) The country switches from democracy to dictatorship.
(d) A baby boom causes a growth in the labour force.
(e) The country improves trade relations with others.
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