Production Possibility Diagrams (AQA A-Level Economics): Flashcards
📚Flashcards
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10 cards from this deck
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Practise the cards
10 cards from this deck
PPF shows what
PPF shows what
Combinations of 2 goods when all resources fully & efficiently used
Technical progress
Technical progress
New/improved production methods; more output from same resources
Short-run economic growth on PPF
Short-run economic growth on PPF
Movement from inside PPF to frontier (using idle resources)
Long-run economic growth on PPF
Long-run economic growth on PPF
Outward shift of entire PPF (increased productive capacity)
Full employment location on PPF
Full employment location on PPF
Points on the PPF frontier
Unemployment location on PPF
Unemployment location on PPF
Points inside the PPF
Opportunity cost
Opportunity cost
Value of next best alternative foregone when a choice is made
Productive efficiency on PPF
Productive efficiency on PPF
Can't make more of one good without making less of another
Why PPF concave (bowed outward)
Why PPF concave (bowed outward)
Shows increasing opportunity costs as more of a good is produced
Resource allocation
Resource allocation
Process of assigning factors of production to different goods