Production Possibility Frontier

Question 1

Pareto Efficient

Answer 1

all resources have been used efficiently to maximise output while cost of production have been kept as low as possible

Question 2

Allocatively Efficient

Answer 2

when production aligns with consumer preferences

Question 3

Trade-Off

Answer 3

choosing between conflicting objectives, compromise

Question 4

How can a PPF curve move

Answer 4

Shifts out:
If productivity increases for both goods then the PPF shifts out

Shifts in:
If productivity decreases for both goods then the PP shifts in

Only a part shits:
If productivity for one good increases/decreases then only some of the PPF shifts IN/OUT