Answer ONE question from this section (40 marks in total).
11. Explain what is meant by the term ‘production possibility frontier’. Discuss the
circumstances in which such a frontier would change its position. You are encouraged to illustrate your answer with the use of relevant diagrams.
12. Discuss, with examples, when government intervention to correct market failure can be justified and when it cannot be justified.
13. ‘Inflation is always due to excess demand.’ Do you agree? You are encouraged to illustrate your answer with the use of relevant diagrams.
The word limit for Section is 1,500 words. Please note that any words beyond this word limit may not be
marked.