What does a production-possibilities frontier (curve) demonstrate?
Suggest some strategies for encouraging an outward shift in the production-possibilities curve. Here is an interesting website that yall might want to check out: http://www.theshortrun.com/classroom/curves/prodpossibilities.html The PPC is a graphical representation of the maximum amount of one good or service that an economy can produce by reducing production of a second good or service and transferring the resources saved to the production of the first good. For example, an economy might be capable of producing fifty battleships if it produces no food, or no battleships if it produces a million tons of food. Either of these combinations would be a point on a graph with the number of battleships produced on one axis and the amount of food on the other. It traces the number of tons of food that can be made using the resources required for any given level of battleship production. A PPC is normally assumed to be concave to (i.e., bulge away from) the origin. This is because the rate of
