Question

On 11 January 2008, Tata, an Indian producer, launched

a new model, the Nano. On this day it became the

cheapest car available, selling for half the price of the

next cheapest car. For the price of 100,000 rupees, a

brand new Nano could be bought or, for instance, a

second hand 1993 Land Rover.

The car is intended initially for the home market. It is

thought that millions could be sold in India. The firm

also plans to export the car to Latin America, South-east Asia and Africa.

Although selling the car at such a low price will make car ownership more affordable

for more people, there are still many millions of people who would like a car but do not have the income to buy one.


a. Using examples, identify three factors of production used in making cars. [6]


b. Give an example of opportunity cost from the passage. [2]


c. What evidence is there of the economic problem from the passage? [2]


d. Tata produces a range of cars. Use a production possibility curve to illustrate the effect of Tata devoting more of its resources to producing Nano cars. [4]

e. Analyse how an increase in investment can result in economic growth. Illustrate your answer with a PPC. [6]​

Answer 1

Answer:

ኗዘ ሀጎርጕሃ ጌርዐጠ ዕጎርጕ ʇɹ ƃ oɥʞıʞɥoʎ,