ECONOMY - PRODUCTION POSSIBILITY FRONTIER

What is the meaning of PPF?

How is it called the raw material or primary agricultural product that can be bought and sold?

• Allocating

• Commodity

• Orchards

• Depicted

A production possibility frontier (PPF) is a curve that illustrates the maximum possible output combinations of three or more goods/services an economy can achieve when all resources are fully and efficiently employed

• False

• True

The PPF demonstrates that the production of one commodity may increase only if the production of the other commodity ________________.

• decreases

• increases

• remain stable

• none of the above

The PPF curve does not apply to companies that produce three or more products vying for the same resource.

• False

• True

Point X in the graphic is _____________

• Inefficient

• Unattainable

• Possible

• Impossible

Point Y in the graphic is _____________

What of the sentences best represent the graphic?

• An increase in a resource or technology that is equally productive to both goods.

• An increase in a resource or technology that is exclusively efficient for one of the goods.

• There is some loss of resource that is fundamentally necessary for both, or if technology required in both process is destroyed.

• The loss of a resource or technology that affects only one of the goods.

What of the sentences best represent the graphic?

• An increase in a resource or technology that is equally productive to both goods.

• An increase in a resource or technology that is exclusively efficient for one of the goods.

• There is some loss of resource that is fundamentally necessary for both, or if technology required in both process is destroyed.

• The loss of a resource or technology that affects only one of the goods.

What of the sentences best represent the graphic?

• An increase in a resource or technology that is equally productive to both goods.

• An increase in a resource or technology that is exclusively efficient for one of the goods.

• There is some loss of resource that is fundamentally necessary for both, or if technology required in both process is destroyed.

• The loss of a resource or technology that affects only one of the goods.