Reference no: EM132739980

Production possibility curve

- A graph that shows the maximum number of possible units a company can produce if it only produces two products using all of its resources efficientl
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(services)

(Production of technologies)

Figure 1: A production possible curve reflects increasing opportunity cost

- The PPC can demonstrate the fact that because of scarcity, we must make choices. As I city increase production of one product (like attractions), INCREASING amount of another product (like land) must be given up.
- Every point on PPC that is point P to T shows productive efficiency as all resources are fully utilised where point U shows inefficiency, as resources are not fully used.
- Point V is attainable because it is beyond the resources.
- The points on PPC shows increasing opportunity cost as to achieve more of a products, I city have to leave some of the quantity of others product.
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Economic systems
- of Economic 4 types systems ( Capitalism, mixed economy, Islamic economy, command economy)
- For I-city ( Mixed economy )
- Def ; economic system that have both capitalism AND socialism system to solve basic economic problems.
- Existence of Public ownership and private ownership. (I city do business freely and the government encourage them).
- The government helps to control disparity
- price mechanism and economic plans in making decisions
- Government intervention in economy ( the government gives a hand when it comes to tough situation in order to help the economy remain stable)
- Government control the income differences ( I city who get the profit will pay income tax and welfare to the government )
- cooperation between the government, public and business sectors