* Describe the production possibilities frontier? What key concept does this model illustrate? * Answer:
Added by Marvin B.
Close
Step 1
The production possibilities frontier (PPF) is an economic model that illustrates the maximum possible output combinations of two goods or services that an economy can produce, given its available resources and technology, assuming full and efficient utilization Show more…
Show all steps
Your feedback will help us improve your experience
Hoan Nguyen and 61 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
What is the production possibilities frontier? Explain the basics of the simple tool and illustrate your answer with an example!
Hoan N.
What does a production possibilities frontier illustrate?
Production Possibilities Frontier Step 1: Draw the Y and X axes and number the units. Step 2: Label the Y and X axes and title the graph. Step 3: Plot the production combinations. Step 4: Draw the curve. Step 5: Note the opportunity cost of each variable in terms of the other. Answer the following questions: 1) What is the production possibilities frontier? 2) Why do economists use models? 3) How does a society benefit from the production of capital goods? 4) What is the opportunity cost to the society of investing in capital? 5) Why do economists consider the bowed production possibilities curve to be more realistic? 6) How can societies achieve economic growth? Use the following information to complete this assignment: Units of capital goods Units of consumer goods
Cameron B.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD