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5 Cards in this Set
- Front
- Back
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Concave shape of PPC represents |
It represents the concept of increasing opportunity costs. This means that the opportunity costs of producing a good increase as output of the good increases. |
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The graphical representation of PPC |
The Production Possibilities Curve (PPC) is a graphical representation of the maximum attainable combinations of output between two goods that can be produced in an economy within a specified period of time, when all the available resources are fully and efficiently employed, at a given state of technology. |
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Point from within PPC to closer/ on to PPC, |
Increase in actual economic growth |
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4 assumptions of PPC |
1. There are only two types of goods being produced. 2. There is a fixed quantity and quality of resources. 3. All resources are fully and efficiently utilised. 4. There is a fixed state of technology within the specified time period. |
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Movement of PPC curve and factors |
Outward shift represents potential growth Factors: quality / quantity of CELL and technology |
