What is a production possibility schedule?
Production possibilities schedule. The maximum amount of goods (i.e., food and clothing) that a country is able to produce given its labor supply.
What is production possibility curve in simple words?
The production possibilities curve (PPC) is a graph that shows all of the different combinations of output that can be produced given current resources and technology.
What is production possibility curve explain it with a hypothetical schedule and graph?
The production possibility curve represents graphically alternative production possibilities open to an economy. The productive resources of the community can be used for the production of various alternative goods. But since they are scarce, a choice has to be made between the alternative goods that can be produced.
What does a production possibilities curve represent a combination?
The production possibilities curve shows the possible combinations of production volume for two goods using fixed resources. The assumption is that production of one commodity decreases if that of the other one increases.
What is production possibility frontier explain with diagram?
The Production Possibilities Frontier (PPF) is a graph that shows all the different combinations of output of two goods that can be produced using available resources and technology. The PPF captures the concepts of scarcity, choice, and tradeoffs.
What do you mean by production possibility set Class 12?
Answer: Production possibility frontier is a curve which depicts all the possible combinations of two goods which can be produced with given resources and technology in an economy.
What is the definition for defining the combination of goods that can be produced using all of the resources available?
Key takeaways. A production possibilities frontier, or PPF, defines the set of possible combinations of goods and services a society can produce given the resources available.
What do you mean by production possibility curve discuss its implications and uses?
A production possibilities curve in economics measures the maximum output of two goods using a fixed amount of input. The input is any combination of the four factors of production: natural resources (including land), labor, capital goods, and entrepreneurship.
What shifts the PPC?
WHAT CAUSES SHIFT IN PPC? Shifts in the production possibilities curve are caused by things that change the output of an economy, including advances in technology, changes in resources, more education or training (that’s what we call human capital) and changes in the labour force.
What is the production possibility schedule based on?
That being said, let’s check out a hypothetical production possibility schedule and analyze it in the graphical format. Notably, the production possibility schedule is based on the Production possibility curve assumptions mentioned above.
What is a production possibilities curve?
A production possibilities curve is a graphical representation of the alternative combinations of goods and services an economy can produce. It illustrates the production possibilities model.
What is the production possibility frontier in economics?
Production Possibility Frontier. The production possibility curve portrays the cost of society’s choice between two different goods . An economy that operates at the frontier has the highest standard of living it can achieve, as it is producing as much as it can using the same resources.
What does the production possibilities model suggest about specialization?
The production possibilities model suggests that specialization will occur. Specialization implies that an economy is producing the goods and services in which it has a comparative advantage.