How does a production possibility frontier (ppf) illustrate opportunity cost, specialization of resources, inefficiency, and economic growth?
The production possibility frontier (ppf) illustrates a host of economic concepts. The negative slope illustrates opportunity costs. The concavity of the ppf illustrates that resources are specialized. Points within the ppf illustrate the presence of unemployment or resources being used inefficiently. Economic growth is illustrated by a rightward shift of the ppf over time. 5. What are the differences between command economies, free market economies, and mixed economies in terms of the ways they address the three basic economic questions? There are differences between command economies, free market economies, and mixed economies in terms of the ways they address the three basic economic questions. Market-type economic systems answer these questions in a decentralized manner. Command economies, on the other hand, address these questions via centralized decision-making, usually by a centralized governmental authority. Mixed economies combine market-type systems with some degree of govern
