1.1.4 - PPF Flashcards
1
Q
PPF
A
Productive possibility frontiers / Productive potential frontiers
2
Q
Production possibility frontiers
A
Maximum output combinations of two or more goods or services when all resources are efficiently employed
3
Q
Inside the PPF curve
A
Unemployed resources and resources are used inefficiently
4
Q
Outside PPF curve
A
Unattainable with current resources
5
Q
Economic growth
A
PPF shifts outwards
6
Q
Straight line PPF
A
Indication of perfect substitutability of resources such as labour or capital
7
Q
Causes of outwards shifts
A
Improvements in technology, Higher productivity, Increase in stock of capital, Extraction of new land
8
Q
Causes of inwards shifts
A
Effects of natural disasters, War, Net migration out of country, Fall in productivity of labour
