Changes in labor productivity can significantly impact the production possibilities curve (PPC). If labor productivity increases, the economy can produce more goods and services with the same amount of resources, effectively shifting the PPC outward. Conversely, a decrease in labor productivity would restrict output potential, causing the PPC to contract. These shifts reflect the economy's ability to efficiently utilize its resources and maximize production.
Any time the PPC curve shifts outward it indicates economic growth, however reaching a point outside of an PPC can be reached by using trade.
Resources are fixed, All resources are fully employed, Technology is fixed & Only two things can be produced.
Massive unemployment will shift the PPC to the left because labour force remains underutilized. The economy will produce inside the PPC indicating underutilization of resources.
It shows a range of two product quantities that may be created from limited resources. By Lecho648
Changes in labor productivity can significantly impact the production possibilities curve (PPC). If labor productivity increases, the economy can produce more goods and services with the same amount of resources, effectively shifting the PPC outward. Conversely, a decrease in labor productivity would restrict output potential, causing the PPC to contract. These shifts reflect the economy's ability to efficiently utilize its resources and maximize production.
A point below the production possibilities curve (PPC) indicates that resources are not being fully utilized. This could be due to unemployment, inefficiency, or resources being used in a suboptimal way. The economy is operating below its maximum potential output.
Any time the PPC curve shifts outward it indicates economic growth, however reaching a point outside of an PPC can be reached by using trade.
Idle air control motor circuits, target idle not reached (+/- 200),vacuum leak found
Resources are fixed, All resources are fully employed, Technology is fixed & Only two things can be produced.
Massive unemployment will shift the PPC to the left because labour force remains underutilized. The economy will produce inside the PPC indicating underutilization of resources.
The maximum potential that can be reached with the available resources.
It shows a range of two product quantities that may be created from limited resources. By Lecho648
developed countries are those in which have achieved the PPC curve i.e. they achieve maximum utilization of resources in the country
The downward sloping of the Production Possibility Curve (PPC) indicates the trade-offs between two goods or services in an economy, illustrating the concept of opportunity cost. As resources are allocated to produce more of one good, the production of another good decreases, reflecting that not all resources are equally efficient in producing both goods. This slope shows that to increase the output of one good, a certain amount of the other good must be sacrificed. Thus, the PPC visually represents the limits of production given fixed resources and technology.
Trouble Code P1294 means:Target idle not reached
Trouble code P1294 means: Target idle not reached