ppf curves

Question 1

ppf curve

Answer 1

graph which shows the different combinations of outputs of two goods with given factors of production.

Question 2

macro ppf curve

Answer 2

maximum production of all goods and services that can be produced with the current level of production.

Question 3

ppf curve inside vs outside the curve

Answer 3

if its inside it means that not all resources are being used. if its outside the ppf curve it means that the demand is currently unattainable.

Question 4

straight line vs curve

Answer 4

straight line means constant opportunity cost. curve states the law of increasing opportunity cost.

Question 5

productive efficieny

Answer 5

any point on the curve is productively efficient and inside the curve means that it is productive inefficient.

Question 6

allocative effeciency

Answer 6

what’s being produced is being satisfied by the consumers and their wants. shift left or right to be allocatively efficient on the ppf curve to satisfy consumers wants

Question 7

pareto efficiency

Answer 7

idea that nobody can be made better of without making somebody else worse off. any point on the curve can be pareto efficient. shift left or right will satisfy one side.

Question 8

increase ppf production (2)

Answer 8

the curve shifts outwards .Q2CELL quantity and quality capital enterprise land labour.

also .shift left or right to re allocate resources moving along the ppf curve.