PPF Flashcards
1
Q
What is a PPF
A
A graph that shows various combinations of output that the economy can possibly produce.
2
Q
What does PPF stand for?
A
Production possibilities frontier
3
Q
If technology improves for making computers, what happens to the PPF
A
The curve representing computers moves upwards/increases.
4
Q
What happens if immigration increases within building?
A
The curve representing building moves outwards. (Increased labour)
5
Q
What is the equation to show the ratio/opportunity cost of production?
A
Rise/Run.
6
Q
What does the curve/line show on the PPF
A
Within the line/curve is all economic possibilities.
7
Q
Why is the PPF curved/bowed?
A
As production increases, opportunity cost of producing more also increases.
