Analyse and evaluate the production possibility curve to show the effects of different economic events, e.g. improvements in health, education or productivity of labour, asymmetric technology advances, war and famine.

A country allocates resources between manufacturing vehicles and producing textiles. New automation technology is introduced that increases productivity in the vehicle sector only, while textile production methods remain unchanged. Analyse the impact on the production possibility frontier (PPF).

The production possibility curve (PPC) below shows the maximum combinations of agricultural goods and manufactured goods an economy can produce using all available resources efficiently. [Refer to the stimulus] Analyse how a major drought that destroys agricultural land would affect this economy's PPC, explaining the shape and direction of the shift.

A severe drought reduces agricultural productivity in an economy that produces two goods: Food and Manufactured Goods. Explain how this event would affect the production possibility frontier (PPF) and identify the new production capacity for Food when Manufactured Goods output is zero.