PPF

Question 1

PPF

Answer 1

Maximum productive potential of an economy using a combination of two goods or services when resources are fully efficient and employed.

Question 2

Economic growth and PPF

Answer 2

If there’s a increase in land labour or capital or increase in productivity then PPF will shift outwards.
Increase in quantity or quality of resources shifts PPF right so productive potential increase and there is economic growth. Which can be achieved with use of SSPs.

Question 3

Capital goods

Answer 3

Goods which can be used to produce other goods e.g machinery

Question 4

Consumer goods

Answer 4

Goods which cannot be used to produce other goods e.g clotihng

Question 5

Productive and allocative efficiency

Answer 5

All points on boundary are productively efficient as resources are being used to their productive potential
Allocative effiency is when no one can be made better off without making someone else worse off
PPF only shows potential output and allocative efficiency is concerned with how goods are distributed in society