Ppf

Question 1

What does ppf stand for

Answer 1

Production possibility frontier

Question 2

Economic growth

Answer 2

Extra line outside original line

Question 3

Economic decline

Answer 3

Line under original line

Question 4

Capital goods

Answer 4

Goods used by one business to help another business produce consumer goods

Question 5

Consumer goods

Answer 5

Goods produced that have no further production use

Question 6

Specialisation

Answer 6

When a country produces one main thing

Question 7

Disadvantages of specialisation

Answer 7

If demand goes down all income lost
Have to find massive workforce
May influence education choice

Question 8

Advantages of specialisation

Answer 8

Greater economic efficiency
Consumer benefits
Jobs available

Question 9

Division of labour

Answer 9

Specialisation of labour into separate tasks
Train for specific things in labour
Higher productivity

Question 10

What are the 4 main economic agents

Answer 10

Consumers firms government workers

Question 11

What do rational consumers want to maximise

Answer 11

Satisfaction

Question 12

What do producers/firms wish to maximise

Answer 12

Profit

Question 13

What do government wish to maximise

Answer 13

Social and economic welfare

Question 14

What do workers wish to maximise

Answer 14

Benefits of work

Question 15

Four factors of production

Answer 15

Land labour capital enterprise

Question 16

Normative statement

Answer 16

Opinions

Question 17

Positive statement

Answer 17

Can be backed up by evidence and fact

Question 18

X and Y on a ppf

Answer 18

Capital up left side consumer along the bottom