Coursework.Info - Inspiration in an Instant

On the left is an image preview of every page of this document, and below are the first 150 words with formatting removed:

Production Possibility Frontier The production possibility frontier [PPF] (also called the production possibilities curve [PPC] or the transformations curve) is a device used in macroeconomics as a means of measuring the maximal possibility of production of any one good or product in comparison with another, assuming all of its scarce resources are fully and efficiently employed. The PPF is shown in graphical form, in which the two products being compared make up the two axes. The line in which maximal efficiency is acheived is what is known as the PPF. Any point along this line shows maximum efficiency of production levels in different combinations of the two products. Unless both of the products in question are homogenous - in which case a linear graph is output - the PPF is generally of a concave, curved line. A diagram of an average looking PPF can be seen below. The concave shape is very...

Get instant access

• Instant, unlimited access to our documents in full
• Swap your work for free access, or pay £4.99
• To see the full version of this document and 150,044 others