PPF Flashcards
1
Q
Productive Efficiency
A
production taking place at lowest cost bc ppf factors are productively efficient
2
Q
Allocative efficiency
A
Resources used to produce gls which C want mof highly & social Welfare maintained
-(not every combination of g/s max welfare)→ comb of output inside ppf when
they’re unemployed / inefficient
3
Q
ppf shit reasons (4)
A
• Increase productivity of FoP
- Increased output per unit used in production
• Better Management of FoP
- less wast & improve qual
• Capital Stock & labour S
-Eg labour migration & I
• Inercase innovation &I of new products & resources
- Improved production process → Increase efficiency
4
Q
C gs
A
Gs satisfy needs & wants directly
