Question

Draw a production possibilities model for North Korea and label the axis Y guns and X for butter. Put two points. A and B, on the curve . Ising the two point explain the concept of government failure

Answer 1

The production possibilities model for North Korea can be graphically represented in a Production Possibility Frontier. The concept of government failure can be explained using two points on the curve.

Step-by-step explanation:

The production possibilities model for North Korea can be graphically represented in a Production Possibility Frontier. The x-axis represents butter and the y-axis represents guns. Two points, A and B, are plotted on the curve. Government failure can be explained using these two points. If we assume that point A represents a scenario where North Korea produces all guns and no butter, and point B represents a scenario where North Korea produces all butter and no guns, then we can see the concept of government failure. In both scenarios, the government is failing to allocate resources efficiently, as they are not producing any of the other good. This is an example of government failure in the form of inefficient resource allocation in a production possibilities model.