The Production Possibility Frontier (HSC SSCE Economics): Flashcards
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Practise the cards
10 cards from this deck
PPF stands for
PPF stands for
Production Possibility Frontier
Other name for PPF
Other name for PPF
Production possibility curve
4 key assumptions of PPF model
4 key assumptions of PPF model
2 goods, constant tech/resources, full employment
Points ON the PPF indicate
Points ON the PPF indicate
Maximum productive capacity, full employment
Points INSIDE the PPF indicate
Points INSIDE the PPF indicate
Unemployed resources, inefficiency
Points OUTSIDE the PPF are
Points OUTSIDE the PPF are
Unattainable with current resources/technology
Movement along PPF shows
Movement along PPF shows
Opportunity cost - trade-offs between goods
What shifts PPF outward
What shifts PPF outward
Technology improvements or new resources
Concave PPF shape means
Concave PPF shape means
Increasing opportunity cost
Why PPFs are typically concave
Why PPFs are typically concave
Resources not perfectly interchangeable/specialised