The production curve, often represented by the production possibilities frontier (PPF), illustrates the maximum output combinations of two goods or services that an economy can achieve given its resources and technology. Economic growth shifts this curve outward, indicating an increase in an economy's capacity to produce due to factors like improved technology, increased resources, or enhanced productivity. As the production curve expands, it reflects the potential for higher output and greater efficiency, leading to improved living standards and economic prosperity. Thus, the production curve serves as a visual representation of an economy's potential growth trajectory.
due to economic growth
TRUE
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.
An outward shift of the production possibilities curve
Broad social / economic goals. The political process. The production possibilities curve. Utility.
due to economic growth
TRUE
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.
An outward shift of the production possibilities curve
Introductory economic courses tell us that declining capital is a bad sign for economic growth. Capital equipment such as computers and manufacturing equipment, things that are usually used with labor in producing output, is a supply factor (other supply factors include human resources, natural resources, and technology). A nation's potential production (as shown on a production possibilities curve which illustrates a simplified version of the combinations of capital and consumer goods that can be produced) is determined by supply factors along with demand and efficiency factors. Outward shifts of this curve mean economic growth; the potential production has increased. Using capital as an example, if capital increases (increase in supply factor), potential production will increase, thus indicating the potential for economic growth. On the other hand, if capital decreases, potential production will decrease, thus indicating a decrease in economic growth.
Broad social / economic goals. The political process. The production possibilities curve. Utility.
Total value of 4 factors of production including:LandLaborCapitalEnterprizeThe PPC curve adds all these factor ups and create a curve show the possible optimum level of production for 2 competing goods.
growth curve
other names for production possibility boundary are: production possibility curve production possibility frontier transformation curve.
other names for production possibility curve are: production possibility boundary production possibility frontier transformation curve.
How does ppc help in solving basic economic problems
The IS curve represents combinations of the real interest rate and GDP growth in an economy. It is all the combinations of points where the economy's income = total production.