The production possibility frontier (PPF) shows the alternative maximum combinations of two items which can be produced from a fixed quantity of resources.
It reflects scarcity in that it is only possible to obtain more consumer goods by having fewer capital goods. However, the nature of this trade off is not fixed. If it were then the production possibility curve (PPF) would be a straight line.
Any point on the PPF represents an efficient allocation of resources whereas points inside the PPF represent an inefficient allocation of resources since it would be possible to produce more of one good without sacrificing any of the other.
marlinbito answered the question on July 5, 2018 at 09:59
- Evaluate the view that current account deficits are still economically significant.(Solved)
Evaluate the view that current account deficits are still economically significant.
Date posted: July 5, 2018. Answers (1)
- Critically examine the view that free trade alone is insufficient to promote economic development.(Solved)
Critically examine the view that free trade alone is insufficient to promote economic development.
Date posted: July 5, 2018. Answers (1)
- Explain the main differences between Less Developed Countries and Newly
Industrialised Countries.(Solved)
Explain the main differences between Less Developed Countries and Newly
Industrialised Countries.
Date posted: July 5, 2018. Answers (1)
- Critically examine the view that government “green” policies benefit neither businesses nor the environment. (Solved)
Critically examine the view that government “green” policies benefit neither businesses nor the environment.
Date posted: July 5, 2018. Answers (1)
- Explain some of the ways in which businesses may use and misuse the environment. (Solved)
Explain some of the ways in which businesses may use and misuse the environment.
Date posted: July 5, 2018. Answers (1)
- Critically examine the view that firms can continue to grow without experiencing diseconomies of scale. (Solved)
Critically examine the view that firms can continue to grow without experiencing diseconomies of scale.
Date posted: July 5, 2018. Answers (1)
- Explain the relationship between a firm’s short run and long run average cost curves.(Solved)
Explain the relationship between a firm’s short run and long run average cost curves.
Date posted: July 5, 2018. Answers (1)
- Critically examine the view that consumers benefit more from non-price competition than from price competition.(Solved)
Critically examine the view that consumers benefit more from non-price competition than from price competition.
Date posted: July 5, 2018. Answers (1)
- Explain why firms engage in non-price competition(Solved)
Explain why firms engage in non-price competition
Date posted: July 5, 2018. Answers (1)
- Evaluate the view that the government’s top priority should be to achieve a more equitable distribution of income(Solved)
Evaluate the view that the government’s top priority should be to achieve a more equitable distribution of income
Date posted: July 5, 2018. Answers (1)
- Outline the main macroeconomic policy objectives of a government.(Solved)
Outline the main macroeconomic policy objectives of a government.
Date posted: July 5, 2018. Answers (1)
- Using aggregate demand and aggregate supply analysis, explain the impact on an
economy of an expansionary fiscal policy(Solved)
Using aggregate demand and aggregate supply analysis, explain the impact on an
economy of an expansionary fiscal policy
Date posted: July 5, 2018. Answers (1)
- Critically examine the view that only monetary policy can control an economy’s rate of inflation. (Solved)
Critically examine the view that only monetary policy can control an economy’s rate of inflation.
Date posted: July 5, 2018. Answers (1)
- Analyse the impact of persistently high rates of inflation upon an economy(Solved)
Analyse the impact of persistently high rates of inflation upon an economy
Date posted: July 5, 2018. Answers (1)
- Critically examine the view that contestable markets lead to a more efficient allocation of resources than any other market structure(Solved)
Critically examine the view that contestable markets lead to a more efficient allocation of resources than any other market structure
Date posted: July 5, 2018. Answers (1)
- Explain the difference between a perfectly competitive market and a perfectly
contestable market.(Solved)
Explain the difference between a perfectly competitive market and a perfectly
contestable market.
Date posted: July 5, 2018. Answers (1)
- Critically examine the view that the advantages associated with large scale production mean that small firms will become a thing of the past.(Solved)
Critically examine the view that the advantages associated with large scale production mean that small firms will become a thing of the past.
Date posted: July 5, 2018. Answers (1)
- Explain why firms often strive to produce on a larger scale.(Solved)
Explain why firms often strive to produce on a larger scale.
Date posted: July 4, 2018. Answers (1)
- Critically examine the policies which governments could adopt in order to shift the long run aggregate supply curve (LRAS) to the right.(Solved)
Critically examine the policies which governments could adopt in order to shift the long run aggregate supply curve (LRAS) to the right.
Date posted: July 4, 2018. Answers (1)
- Explain what is shown by an economy’s short run aggregate supply curve.(Solved)
Explain what is shown by an economy’s short run aggregate supply curve.
Date posted: July 4, 2018. Answers (1)