Microeconomics assignment February 2015;

There are two parts to the assignment
(i)    In economics, how does the Production Possibility Frontier illustrate the ideas of production, allocative and distributional efficiency? Explain your answer with diagrams.
(ii)    Consider, for a country of your choice, the main challenges faced in terms of productive, allocative and distributional efficiency. What current or future policies would help to improve the economic efficiency of that country? Explain your answer with relevant statistics.
The assignment is 1000 words. You will need to submit on Turnitin AND give your teacher a paper copy of your work.

WRITING EXERCISE – ECONOMIC EFFICIENCY
1.    DISCUSS THE IDEAS OF ECONOMIC CHOICE, SCARCITY AND RESOURCES; THE ADVANTAGES AND DISADVANTAGES OF DIFFERENT ECONOMIC SYSTEMS, PRODUCTION POSSIBILITY CURVE AND ALLOCATIVE, PRODUCTIVE AND DISTRIBUTIONAL EFFICIENCY.

2.    DESCRIBE THE ECONOMY OF THE COUN TRY YOU ARE FROM.
FOR EXAMPLE:-
–    SIZE OF ECONOMY (GDP)
–    POPULATION
–    SIZE OF WORKFORCE
–    RATE OF ECONOMIC GROWTH
–    MAIN SECTORS/INDUSTRIES

3.    WHICH INDUSTRIES AND SECTORS ARE MAINLY RUN BY PRIVATE ENTERPRISE (FREE MARKETS)?

4.    WHICH INDUSTRIES OR SECTORS ARE RUN MAINLY BY THE GOVERNMENT?

5.    WHAT ARE THE MAIN WAYS THE ECONOMY NEEDS TO DEVELOP? EXAMPLES – TRANSPORT, EDUCATION AND SKILLS, INVESTMENT IN THE PRIVATE SECTOR, LAND REFORM, SOCIAL EQUALITY?

6.    DO YOU THINK THE MAIN ECONOMIC PROBLEM FOR YOUR COUNTRY IS ALLOCATIVE, PRODUCTIVE  OR DISTRIBUTIONAL EFFICENCY? HOW CAN THIS INEFFICIENCY BE IMPROVED?

7.    CONCLUSION: SUMMARISE YOUR POINTS AND WRITE A SENTENCE OR TWO ON THE WAY FORWARD.