Suppose the fictional country of Acadia produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for sorghum, an agricultural good, and electric generators, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of an improvement in soil quality because of new fertilization techniques. Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, if you try to move a point and it snaps back to its original position, just drag it a little farther.

Welfare analysis of the society is related to welfare economics. From the economic point of view former welfare economics refers to that subject which uses the techniques of microeconomics to analyse and evaluate the welfare at the economic or aggregate …