Question

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

Answer 1

2.1
2.1.1 A shift in production from CDs (services) towards TVs (goods) - a movement along the curve.
2.1.2 An increase in the potential output of the community due to a greater availability of the factors of production - PPC will shift outwards (to the right).