00:01
So here we have four statements about production and we have to pick out the rest, the correct one.
00:05
So let's go through these each in turn, right? so both the production function, which i'll call pf, right? pf is equal to the production function and ppf is equal to the production possibilities frontier.
00:30
Both pf and ppf max output.
00:35
So that one is tough to parse, right? let's try a different one.
00:39
B, pf describes a firm, ppf whole economy.
00:54
C, pf will tell us max output.
01:04
This is absolutely correct, right? this is correct, so it's not the right answer, right? it's a true statement because if you plug in, right, you plug in your in max resources, you will then get max one, right? that's the basic idea of a production function, right? it tells you how much you can get from a certain amount of resources.
01:38
So if you put in all resources, it'll tell you how much output you can get.
01:42
And d is also correct, right? ppf describes the choices.
01:54
That's also true, right? it's also true.
01:57
When we think of a ppf, right, it's telling you about the different choices that you can make between different levels of different goods, right? that's exactly what a ppf is doing...