Answer to Question #75185 in Microeconomics for SHEHZAAD

Question

2.1 A community in Northern Namibia produces only two goods, TVs and CDs. With the aid of properly labelled production possibilities curves illustrate each of the following (putting TVs on the vertical axis).
2.1.1 A shift in production from CDs (services) towards TVs (goods). (5)
2.1.2 An increase in the potential output of the community due to a greater availability of the factors of production. (5)

Answer 1

2.1.1. There will be a movement along the PPF curve.
2.1.2. The PPF curve will shift outward (rightward).