The production possibilities frontier (PPF) shows how much of two goods an economy can produce when it is using all available as efficiently as possible.
Question
Solution 1
The Production Possibilities Frontier (PPF) is a model that shows the trade-offs an economy faces in the production of two goods. It assumes that all resources are fully and efficiently utilized, and that the economy is operating at a stable level.
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Similar Questions
When production is characterized by opportunity costs, the resulting production possibilities frontier will be a straight line.
The production combinations that fall directly on the production possibilities frontier (curve) are and efficient. (Use one word to fill in the blank.)
Why does the downward-sloping production possibilities curve imply that factors of production are scarce?
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