PPF Flashcards
1
Q
What does PPF stand for?
A
Production Possibility Frontier
2
Q
What is the purpose of the PPF?
A
PPF shows all the possible combination of goods we can produce using all of our resources efficiently.
3
Q
When on the PPF line…
A
You are productively efficient as you are making the most out of your resources.
4
Q
Inside the PPF curve you are…
A
Productively inefficient as you are not making full use of the resources.
