The Student Room Group

econimic problem

Over the last two decades, the planned economies have introduced elements of the market mechanism into their economic systems. To what extent could it be argued that the market mechanism is better than the planned economy as a means of allocating resources?
Explain:
i. Why is the production possibility frontier concave to the origin?
ii. How production possibility frontier can be used to explain the concept of opportunity cost,
iii. How the production possibility frontier provides an insight into the issues of scarcity and choice which Zimbabwe faces when deciding what goods and services to produce.
(edited 5 years ago)

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