Question

1. Under what circumstances would the production possibility curve be (a) a straight line; (b) convex towards the origin? Are these circumstances ever likely? 2. Which of the following are macroeconomic issues, which are microeconomic ones and why? a. Low wages in certain service industries. b. The rate of exchange between the pound and the euro. c. Why the price of cabbages fluctuates more than that of cars. d. The rate of economic growth this year compared with last year. e. The decline of traditional manufacturing industries 3. The United States is considered a rich country because Americans can choose from an abundance of goods and services. How can there be scarcity in a land of abundance? 4. Discuss the opportunity costs you incur by attending Madda Walabu University for four years. 5. What are assumptions in Economics? Why do economists make assumptions?​

Answer 1

Answer:The Production Possibilities Curve (PPC) is a model used to show the tradeoffs associated with allocating resources between the production of two goods

Step-by-step explanation: