1.4 - Production Possibility Curves Flashcards
1
Q
What are production possibility curves?
A
A curve which shows the maximum output of two types of products and the combinations of those products that can be produced along with existing resources.
2
Q
What do ppfs show?
A
3
Q
What is the economy?
A
Any area in which the economic activities of production exchange and consumption take place
4
Q
What are on the axis of PPFs?
A
Consumer goods - goods which are produced for their own satisfaction
Capital goods - Goods which are not wanted for their own sake but what they can produce
