PPF Curve (2)

Question 1

What does PPF curve stand for?

Answer 1

Production Possibility Curve

Question 2

PPF definition

Answer 2

Maximum possible production of 2 goods/services with given factors of production

Question 3

What’s the opportunity cost of a PPF?

(Laptops and Tablet E.G)

Answer 3

The more we produce of Laptops, the more we have to give up of tablets to produce.

Question 4

How can increase the Tablet Production?

Answer 4

We can use factors of production. For example:

• Moving workers from laptop production to tablet
• Moving machinery from laptop to tablet to produce more