PPF

Question 1

What does PPF stand for?

Answer 1

Production Possibility Frontier

Question 2

What is the purpose of the PPF?

Answer 2

PPF shows all the possible combination of goods we can produce using all of our resources efficiently.

Question 3

When on the PPF line…

Answer 3

You are productively efficient as you are making the most out of your resources.

Question 4

Inside the PPF curve you are…

Answer 4

Productively inefficient as you are not making full use of the resources.