Contains-
.two goods
.fixed resources (L.L.C.E)
.fixed technology
.full employment of resources
Efficiency- using resources in such a way as to maximize the production of goods and services
Allocate efficiency- products being produced are not most desired in society
Productive efficiency- produced in the least costly way, any point on curve.
Under utilization- fewer resources than an economy is capable of using
A) Inside curve (under utilization, attainable, inefficient
B-C) On Curve (attainable, efficient)
D) Outside curve (unattainable)
3 Types of movement that occurs withing the PPC
1. Inside the curve- resources are unemployed or underemployed
2. Along the PPC- efficient and employed
What causes the PPC/PPF to shift
1. Technological changes
2. Economic changes
3. ▲ in resources
4. ▲ in labor forces
5. Natural disasters/ War/ Famine
6. More education/ training (human capital)
Allocate efficiency- products being produced are not most desired in society
Productive efficiency- produced in the least costly way, any point on curve.
Under utilization- fewer resources than an economy is capable of using
A) Inside curve (under utilization, attainable, inefficient
B-C) On Curve (attainable, efficient)
D) Outside curve (unattainable)
3 Types of movement that occurs withing the PPC
1. Inside the curve- resources are unemployed or underemployed
2. Along the PPC- efficient and employed
What causes the PPC/PPF to shift
1. Technological changes
2. Economic changes
3. ▲ in resources
4. ▲ in labor forces
5. Natural disasters/ War/ Famine
6. More education/ training (human capital)
You missed a movement of the PPC, which is a shift of the PPC. It is listed, but can seem confusing by the formatting. Aside from that, I find the use of a PPC to be niche since there are many complex economies that produce a wide variety of products. Would there be a use of the PPC in times before?
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