PPFs

Question 1

ppf illustrate

Answer 1

scarcity and choice

Question 2

in micro what 2 things does ppf show

Answer 2

Max possible prod of 2 goods or services with a given level of FOP

Various combo of 2 goods and service that can be produced with a given level of FOP

Question 3

in macor waht 2 things does ppf show

Answer 3

Max possible prod of all g/s that can be produced with the level of FOP in teh econ

Tells us various combo of all g/s that can be produced with given FOP in econ

Question 4

what 3 things can ppf show us

Answer 4

opp cost

efficiency

how production of g/s can be increased

Question 5

in micro on a ppf we look at

Answer 5

two speciifc good

Question 6

what are x and y axis on ppf for micro

Answer 6

names of specific g/s we looking at

Question 7

we cannot produce beyond the

Answer 7

linw

Question 8

Firms wants to specialise and produce more tablets i.e 50-60 how would they do this

Answer 8

reallocate FOP to increase tablets/suit tablet prod

Question 9

draw PPF 1curve with 3 points along curve

Answer 9

axis labelled

3 points dotted with numbers

Question 10

on my ppf curve point a to b on ppf a firm ..

Answer 10

give up producing some laptops

Question 11

They go from 75 tp 60 laptops when moving from 50-60 tablets whats the opp cost

Answer 11

The opp costs is 15 laptops when producing 10 more tablets units

Question 12

i increase units of tablets by 10 this time hteres an opp cost of 30 units of laptops as opposed to og 15

what does this mean CONCAVE PPF can show us

Answer 12

law of increasing opp cost

Question 13

Whats the law of increasing opp cost

Answer 13

-the more we produce of something more of other things that has to be given up each tim

Question 14

what are the labels we can have in macro ppf

Answer 14

consumer goods+capital goods

goods and service

Question 15

using goods and service on y and axis measn

Answer 15

nothing else can be produced in econ

Question 16

we use consumer goods and services to show were looking at an

Answer 16

entire econ

Question 17

why when produce more tablets they give up sig more laptop

4 marks

Answer 17

intially FOP more suited laptop prod

however as move towards tablet

FOP more speicalised towards tablets,

so now less suited towards laptops

Question 18

in general as we move along PPF curve what happens to FOP

Answer 18

more suited towards one thing than other thing

Question 19

opp cost example curve is same for macro and micro T/F

Answer 19

T

Question 20

Draw linear diagram ppf for macro

Answer 20

consumer goods
capital goods

linear line with drawn line and numbers

Question 21

linear diagram demonstrates

Answer 21

constant opp cost

Question 22

what 3 types of eficiency can we derive from PPF

Answer 22

PRODUCTIVE ALLOCATIVE PARETO

Question 23

DRAW DIAGRAM WITH 5 POINTS

Answer 23

laptops

tablets

5 points abc
d within
e outside

Question 24

on a ppf concave diagram what points are producitvley efficient

Answer 24

ABC

Question 25

Why are ABC productivley effeicient on PPF 3 MARKS

Answer 25

using up all FOP to max level so getting max prod from all FOP available there is no waste/unemployment

Question 26

whre would not be productivley effeicient

Answer 26

d / any point not on curve - how about above i.e e

Question 27

why is any point not on ppf curve productivley ineefficent

Answer 27

we are wasting FOP as not getting max use of them use and output

Question 28

explain what the point e / point beyond curve SHOWS 3 PARTS

Answer 28

unattainable with given FOP so firm on micro sense can not produce beyond curve yet with given FOP

Question 29

any pointbeyonf curve is unattainable with given FOP so on a micro sense what does this mean

Answer 29

so firm can not produce beyond curve yet with given FOP

Question 30

in macor waht is point D / points within curve

Answer 30

unemployment

Question 31

why ispoint D unemploymeny on ppf in macro 2 MARKS

Answer 31

not maxing use of FOP in econ so hay unemployment of labour/capital

Question 32

ALLOCATIVE efficiecny means

Answer 32

Whether what's being produced satisfying consumer demand and wants

Question 33

can we tell Allocative efficiency from PPF

Answer 33

NO

Question 34

Why cant we tell allocative efficiency from PPF

Answer 34

we dunno about consumer demand i.e if all consumers wanted was laptops point b may not eb allocativley efficient as allcoatgivley efficient would be near laptops

Question 35

Plot point where allocative efficicenyc would be if all society wanted was laptops

Answer 35

it would be at the top near laptops

Question 36

PARETO efficieny is

Answer 36

No one can be made better off without making someone worse off

Question 37

whre would pareto efficiency be on graph - EVEN IN AND OUT?

Answer 37

Any point on ppf is pareto efficienct

Question 38

i move from point B to Point C explain why im being pareto efficient 4 marks

Answer 38

we producing more tablets but giving up laptops so we making people who like tablets better off but people who liek laptops worse off as less are produced

Question 39

what are the 3 ways we can use PPF to show INCREASING PRODUCTION

Answer 39

move from point within curve to point on reallocate resources towards certain product shift PPF curve outward

Question 40

why is Business @ point D prod inefficient and pareto efficient ,

Answer 40

not maxing use of FOP so thers some unemployment + someine being made worse off by choice of produciton

Question 41

give example of ho we can shift from point D to that on a curve

Answer 41

use FOP better e.g employ idle capital and labour to increase prod

Question 42

what efficiency is a bs operating on if on line

Answer 42

pareto - AS THOSE WHO LIKE X ARE WORSE OFF prod as all fop being employed

Question 43

how can i show increasing production if im already on curve 3 MARKERS

Answer 43

reemploy and reallocate FOP to spec more in tab production than laptops by moving along PPF from point A(PRODUCING LAPTOPS TO AN EXTENT to B (PRODUCING MORE TABLETS) move fop along to to favour tab production by reallocating fop E.g move worekrs away from producing laptops to taltes

Question 44

How can we , to show increasing produciton shift ppf outward

Answer 44

increaing quality or quantity of cell

Question 45

what is beauty of shifting curve outward

Answer 45

you dont need to give up laptops as at point y more laptops produced as well as tablets

Question 46

draw a shifting curve outwards

Answer 46

new line x and y axis label with equal numers nad increases

Question 47

acronmy for shifting curve outward

Answer 47

Q2CELL for FOP

Question 48

Give example f Q2 cell 3 marks hitn think 3 fop

Answer 48

Increase quality of labour thorugh productivity by training up better which will allowing workers to produce more in given time period Increase quality of capital by igrading machinery Increase quality/quantity of land e,g agriculture through fertiliser so more crops can be produced

Question 49

how else can our curve shift

Answer 49

through favouring prod of specific good

Question 50

explain how curve can shift to show increase prod through favouring prod of specific good

Answer 50

a change in q2cell that purely suit/specialised production of tablets ,cause shift which is not parallel

Question 50

give 3 example of change in Q2 CELL that favours speciifc good

Answer 50

increase in quantity of labour but can only produce tablets IMPROVE Quality (through training), prod of labour , in prod of tablets quantity of capital only machinery produces tablets .

Question 51

draw shift of PPF that favours one specific product

Answer 51

axis secific goods arrow showin shift shift is like extra line starting 3/4 of way