Econ 1 - PPF Flashcards
1
Q
what can the PPF show?
A
The PPF indicates the maximum possible output that can be achieved given a fixed set of resources and technology in a particular time period.
2
Q
Factors shifting the PPF outwards?
A
- New resources
- improving technology
- increased supply of labour
- improvements in human
capital through investment in education. (training) - better management of resources.
- changing attitudes encouraging entrepreneurialism
3
Q
Factors shifting the PPF inwards?
A
- Existing machinery
- Resources run out
- Erosion of infrastructure
