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Scarcity, choice and the frontier

Scarcity, choice and the frontier

PPF with consumer goods on the horizontal axis and capital goods on the vertical axis, showing an efficient point on the curve, an inefficient point inside, an unattainable point outside, a movement along the curve, and an outward shift

A production possibility frontier, or PPF, shows the maximum combinations of two goods an economy can produce when all resources are fully and efficiently used, given current technology. It turns scarcity into a picture because getting more of one output usually means giving up some of another.

1.1.4 Production possibility frontiers Lesson

  1. A Level
  2. /Economics
  3. /1.1.4 Production possibility frontiers