Production Possibility Diagrams (AQA A-Level Economics): Quizzes
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Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What does a production possibility frontier (PPF) show?
What does a production possibility frontier (PPF) show?
All combos of 2 goods with full employment
Which is a key assumption behind a PPF?
Which is a key assumption behind a PPF?
Resources are fully employed
Why are most PPFs concave (bowed outward)?
Why are most PPFs concave (bowed outward)?
Resources aren't perfectly adaptable
What does short-run economic growth show on a PPF?
What does short-run economic growth show on a PPF?
Movement from inside PPF to the frontier
What does long-run economic growth show on a PPF?
What does long-run economic growth show on a PPF?
Outward shift of the entire frontier
What do points inside the PPF represent?
What do points inside the PPF represent?
Unemployment and inefficiency
When does productive efficiency occur?
When does productive efficiency occur?
Impossible to make more of one w/o less
What does the slope of the PPF show?
What does the slope of the PPF show?
Opportunity cost of production
Which causes an outward shift of the PPF?
Which causes an outward shift of the PPF?
Investment in new capital goods
What are capital goods?
What are capital goods?
Goods that help produce future goods