1.1.4

Question 1

Production possibility frontier

Answer 1

Depict the maximum productive potential of an economy, when resources are full and efficiently employed

Question 2

What shifts the curve outwards

Answer 2

Increase in the quality or quantity of the good/service

Question 3

Capital goods

Answer 3

Goods which can be used to produce other goods, such as machinery

Question 4

Consumer goods

Answer 4

Goods which cannot be used to produce other goods, such as clothing