Production Possibility Curve Flashcards
(5 cards)
1
Q
Production possibility curve
A
Diagram which represents the maximum combination of goods and services that can be produced in an economy
2
Q
How can a country be on it’s ppc
A
- no unemployment of factors of production
- efficiency in use of factors of production
3
Q
How to shift ppc outwards
A
- increase in quality of factors of production
- increase in quantity of factors of production
4
Q
Ped for decision makers
A
- help producers decide pricing strategy
- decide which products to impose tax on
5
Q
Price discrimination
A
When firms charge different customers diff produced for same product bcuz diff in ped
