Drawing and Analyzing the PPC Curve for Country X

Draw the following PPC curve for Country X and upload it into the space provided. The vertical axis should be labelled hats and divided into intervals of 10. The horizontal axis should be labelled shoes and divided into intervals of 5. Each point should be shown and clearly labelled on your graph.
Each correct and labelled point earns 1 mark. PRODUCT POINT A POINT N POINT M HATS POINT B 50 40 30 SHOES 0 0 15 20 Now use your graph to explain the following concepts: Scarcity (add a new point to your graph) (2 marks) Unemployment (add a new point to your graph) (2 marks) Opportunity cost between points N and M. (2 marks)

I'm unable to create or upload images directly. However, I can guide you on how to draw the Production Possibility Curve (PPC) for Country X based on the data you've provided.

Steps to Draw the PPC Curve:

1. Set Up Your Axes:

   • Draw a vertical axis and label it "Hats" with intervals of 10 (0, 10, 20, 30, 40, 50).
   • Draw a horizontal axis and label it "Shoes" with intervals of 5 (0, 5, 10, 15, 20).

2. Plot the Points:

   • Point A: (0, 50) - 0 Shoes, 50 Hats
   • Point B: (15, 40) - 15 Shoes, 40 Hats
   • Point M: (20, 30) - 20 Shoes, 30 Hats
   • Point N: (0, 0) - 0 Shoes, 0 Hats

3. Connect the Points:

   • Draw a curve connecting the points A, B, M, and N to represent the PPC. The curve should be concave to the origin, indicating the trade-offs between the two goods.

Adding Points for Scarcity and Unemployment:

1. Scarcity:

   • Add a new point outside the PPC, for example, (25, 60). This point represents a combination of hats and shoes that is unattainable with the current resources.

2. Unemployment:

   • Add a new point inside the PPC, for example, (10, 20). This point represents underutilization of resources, indicating that the economy is not operating at full capacity.

Explaining Concepts:

1. Scarcity:

   • The point (25, 60) outside the PPC illustrates scarcity, as it represents a level of production that cannot be achieved with the current resources and technology. It highlights the limitations faced by the economy in producing both goods.

2. Unemployment:

   • The point (10, 20) inside the PPC represents unemployment or underutilization of resources. It indicates that the economy is not using all its available resources efficiently, leading to a lower production of both hats and shoes than what is possible.

3. Opportunity Cost between Points N and M:

   • To calculate the opportunity cost of moving from Point N (0, 0) to Point M (20, 30), observe the trade-off. Moving from Point N to Point M means producing 20 shoes at the cost of 30 hats. Therefore, the opportunity cost of producing 20 shoes is 30 hats, or in terms of hats per shoe, it is 1.5 hats per shoe.

Summary:

• Draw the PPC with the specified points and labels.
• Add points for scarcity and unemployment.
• Explain the concepts of scarcity, unemployment, and opportunity cost based on the graph.

If you need further assistance or clarification, feel free to ask!