1 / 6

LESSON 2.2 Production Possibilities Frontier

Objectives. LESSON 2.2 Production Possibilities Frontier. Describe the production possibilities frontier and explain its shape. Explain what causes the production possibilities frontier to shift. Key Terms. LESSON 2.2 Production Possibilities Frontier.

davin
Télécharger la présentation

LESSON 2.2 Production Possibilities Frontier

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Objectives LESSON 2.2Production Possibilities Frontier Describe the production possibilities frontier and explain its shape. Explain what causes the production possibilities frontier to shift. CONTEMPORARY ECONOMICS: LESSON 2.2

  2. Key Terms LESSON 2.2Production Possibilities Frontier production possibilities frontier (PPF) efficiency law of increasing opportunity cost economic growth CONTEMPORARY ECONOMICS: LESSON 2.2

  3. Efficiency and Production Possibilities Frontier • Simplifying assumptions • PPF model • Inefficient and unattainable production • Shape of the PPF CONTEMPORARY ECONOMICS: LESSON 2.2

  4. Production Possibilities Frontier • A through Fare attainable • I represents inefficient use of resources • U represents unattainable combinations CONTEMPORARY ECONOMICS: LESSON 2.2

  5. Shifts in the PPF • Changes in resource availability • Increases in stock of capital goods • Technological change • Lessons from the PPF CONTEMPORARY ECONOMICS: LESSON 2.2

  6. Increase in available resources Decrease in available resources Shifts in the PPF CONTEMPORARY ECONOMICS: LESSON 2.2

More Related