ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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minimum amounts; efficiency
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minimum amounts; technology and inputs to production
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maximum amounts; technology and inputs to production
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maximum amounts; a command economy
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Detailed explanation-1: -Key Points. The Production Possibilities Frontier (PPF) is a graph that shows all the different combinations of output of two goods that can be produced using available resources and technology. The PPF captures the concepts of scarcity, choice, and tradeoffs.
Detailed explanation-2: -The Production Possibilities Curve (PPC) is a model that captures scarcity and the opportunity costs of choices when faced with the possibility of producing two goods or services. Points on the interior of the PPC are inefficient, points on the PPC are efficient, and points beyond the PPC are unattainable.
Detailed explanation-3: -When the PPF curve moves outwards (outward shift), we can infer there has been growth in an economy. This can result from an increase in resources. It can also represent improved technology. When the PPF curve moves inwards (inward shift) it suggests the economy is shrinking.