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micro y1 > PPFs > Flashcards

PPFs Flashcards

1
Q

ppf illustrate

A

scarcity and choice

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2
Q

in micro what 2 things does ppf show

A

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

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3
Q

in macor waht 2 things does ppf show

A

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

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4
Q

what 3 things can ppf show us

A

opp cost

efficiency

how production of g/s can be increased

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5
Q

in micro on a ppf we look at

A

two speciifc good

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6
Q

what are x and y axis on ppf for micro

A

names of specific g/s we looking at

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7
Q

we cannot produce beyond the

A

linw

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8
Q

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

A

reallocate FOP to increase tablets/suit tablet prod

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9
Q

draw PPF 1curve with 3 points along curve

A

axis labelled

3 points dotted with numbers

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10
Q

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

A

give up producing some laptops

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11
Q

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

A

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

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12
Q

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

A

law of increasing opp cost

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13
Q

Whats the law of increasing opp cost

A

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

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14
Q

what are the labels we can have in macro ppf

A

consumer goods+capital goods

goods and service

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15
Q

using goods and service on y and axis measn

A

nothing else can be produced in econ

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16
Q

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

A

entire econ

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17
Q

why when produce more tablets they give up sig more laptop

4 marks

A

intially FOP more suited laptop prod

however as move towards tablet

FOP more speicalised towards tablets,

so now less suited towards laptops

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18
Q

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

A

more suited towards one thing than other thing

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19
Q

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

A

T

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20
Q

Draw linear diagram ppf for macro

A

consumer goods
capital goods

linear line with drawn line and numbers

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21
Q

linear diagram demonstrates

A

constant opp cost

22
Q

what 3 types of eficiency can we derive from PPF

A

PRODUCTIVE ALLOCATIVE PARETO

23
Q

DRAW DIAGRAM WITH 5 POINTS

A

laptops

tablets

5 points abc
d within
e outside

24
Q

on a ppf concave diagram what points are producitvley efficient

A

ABC

25
Q

Why are ABC productivley effeicient on PPF
3 MARKS

A

using up all FOP to max level

so getting max prod from all FOP available

there is no waste/unemployment

26
Q

whre would not be productivley effeicient

A

d / any point not on curve

  • how about above i.e e
27
Q

why is any point not on ppf curve productivley ineefficent

A

we are wasting FOP as not getting max use of them

use and output

28
Q

explain what the point e / point beyond curve SHOWS

3 PARTS

A

unattainable with given FOP

so firm on micro sense can not produce beyond curve yet

with given FOP

29
Q

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

A

so firm can not produce beyond curve yet with given FOP

30
Q

in macor waht is point D / points within curve

A

unemployment

31
Q

why ispoint D unemploymeny on ppf in macro

2 MARKS

A

not maxing use of FOP in econ

so hay unemployment of labour/capital

32
Q

ALLOCATIVE efficiecny means

A

Whether what’s being produced satisfying consumer demand and wants

33
Q

can we tell Allocative efficiency from PPF

A

NO

34
Q

Why cant we tell allocative efficiency from PPF

A

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

35
Q

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

A

it would be at the top near laptops

36
Q

PARETO efficieny is

A

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

37
Q

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

A

Any point on ppf is pareto efficienct

38
Q

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

4 marks

A

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

39
Q

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

A

move from point within curve to point on

reallocate resources towards certain product

shift PPF curve outward

40
Q

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

A

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

41
Q

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

A

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

42
Q

what efficiency is a bs operating on if on line

A

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

43
Q

how can i show increasing production if im already on curve

3 MARKERS

A

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

44
Q

How can we , to show increasing produciton shift ppf outward

A

increaing quality

or quantity of cell

45
Q

what is beauty of shifting curve outward

A

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

46
Q

draw a shifting curve outwards

A

new line

x and y axis

label with equal numers nad increases

47
Q

acronmy for shifting curve outward

A

Q2CELL for FOP

48
Q

Give example f Q2 cell 3 marks

hitn think 3 fop

A

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

49
Q

how else can our curve shift

A

through favouring prod of specific good

50
Q

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

A

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

50
Q

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

A

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 .

51
Q

draw shift of PPF that favours one specific product

A

axis secific goods

arrow showin shift

shift is like extra line starting 3/4 of way

micro y1 (9 decks)

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