Graphic Representation In PPC Flashcards
1
Q
Straight line and octave lines
A
It is realistic because there is transfer of higher
efficiency of resources resulting to a high cost
( PPC increasad due to more opportunity cost) and
low demand.
2
Q
Increasing marginal opportunity cost
A
Resources are not equally sited to production of goods, opportunity cost remains constant as the output of the good increases.
3
Q
Straight line
A
Has increasing opportunity cost
4
Q
Concave opportunity cost
A
Represents increase of marginal cost
5
Q
Pivot shift in PPC
A
More resources are devoted in 1 sector but not another then affect in biased.
6
Q
Why PPC becomes inward
A
Because of:
- Natural disasters
- war conditions
- man made calamities (like bombs??)
7
Q
Significance of CAPITAL GOODS FOR
PRODUCTIVITY & ECONOMIC GROWTH
A
- Enables workers to increase productivity
- Encourages potential growth
- Higher economic growth
