ppf

Question 1

3 uses for ppf diagram

Answer 1

1. to show the oppertunity cost
2. to see if economy is efficient
   3.to see long run economic growth

Question 2

5 factors that shift the PPF outwards

Answer 2

1. increase in immigration (labor)
2. lower business tax
3. improvement in technology
4. higher unemployment
5. increase availability of land

Question 3

what are the 4 factors of production

Answer 3

1. land
2. laybor
3. capital
4. enterprise

Question 4

what are the advances of economic growth ( ppf shifting outwards)

Answer 4

1. more profit
2. trade more
3. better standard of living
4. reduce poverty
5. improver infrastructure
6. more innovation
7. more tax revenue for government

Question 5

2 possible negatives of economic growth

Answer 5

1. higher pollution from factories
2. increased income inequality
3. Exhaustion of resources

Question 6

what is a dividend

Answer 6

a portion of the profits of the business given to the share holders

Question 7

3 causes od a change in preference for a product

Answer 7

1. change in fation
2. innovation
3. chapter substitute
4. changes in lifestyle

Question 8

impacts of a change in preference for a good of service

Answer 8

• change in price
• change in demand
• creates opportunities
• product innovation