THE PRODUCTION POSSIBILITY FRONTIER. The production possibility frontier (PPF) is a curve depicting all maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors. When predicting the production possibility frontiers for Brazil and United States the following factors such as labor, capital and technology, among others, will affect the resources available, which will dictate where the production possibility frontier lies. The production possibility frontier
Productive Efficiency and In Efficiency of a Production Possibility Frontier (PPF) Introduction The production possibility frontier is also known as the (PPF) in the economics world. It is simply a graph or diagram that does clearly show the production rate of two goods and/or services that an economy does produce efficiently or inefficiently over a given period of time. It accurately shows the production levels of the maximum to the minimum amounts produced in a uniformly drawn curve. This is usually
and we cannot do everything so we try to allocate the scarce resources in the most efficient way possible. A couple of economic decision-making principles I find important for the issue of weighing of trade-offs is the principle of the production possibilities frontier, opportunity cost and scarcity. In economics most principles are intertwined so even if they are similar concepts it is important to use the key concepts needed while making a decision as its implies subtle differences. The three electives
problem that how to effective utilization of resource. This essay will simple introduction the production possibilities frontier , explaining situations when the factor within the production possibilities frontier , on the PPF , and goods which may cause the production possibilities frontier to shift outwards . In addition , the essay will show the four factors of production . The main body The production make from four factors . Firstly ,land is one of very important factors.All of the natural physical
involve the concept of scarcity. There are “opportunity costs” associated with any choice that you make. In order for an economy to produce more of one type of product, it will be forced to sacrifice units of production of another product. The shifting of resources from the production of one good to another involves increasing sacrifices of the first good in order to generate an equal increase of the second good. This is known as the “law of increasing opportunity costs.” The economic rational
Opportunity cost is an essential concept to understand when studying Economics. Opportunity cost consists of everything that you give up when you make an economic decision. It exists in nearly every decision that presents itself and is clearly evident in Able 's decision in "I Knew a Guy Once" to remove Wheeler 's 'rules ' from the door, the growth of the Shenzen people from a population of zero to over 9 million in 30 years, and in my decision to take this class. In all of these cases, the decision-makers
In this essay I will be talking about the 4 factors of production and the production possibility frontier and why some economies operate within the production possibility frontier and factors that cause the Production Possibility Frontier to shift outwards making the economy more efficient. The four factors of production are land, labour, capital and enterprise. Land is the natural resources available for production. Some nations are lucky enough to have the resources within their country and don’t
one of two main problems of production. Due to the scarcity of resources we are unable to produce the correct amount of goods and services to satisfy the customer’s unlimited desires. Production of goods and services using the available resource is achievable through what is known as factors of production. Secondly, opportunity cost plays its role in the production of goods and services through factors of production. To simplify and illustrate the process of production using available resources, a
hour. She can also read 50 pages of sociology in an hour. She spends 5 hours per day studying. • Draw Maria’s production possibilities frontier for reading economics and sociology. If Maria spends five hours studying economics, she can read 100 pages. If she spends five hours studying sociology, she can read 250 pages. The time costs are constant the production possibilities frontier is a straight line. • What is Maria’s opportunity cost of reading 100 pages of sociology? It takes Maria two hours
alternative declined. This cost is not measured in financial terms. The concept of scarcity choice and opportunity cost can be graphically depicted by using the production possibility frontier. The choice between either transport or cost for other goods and services (OGS) can be produced in finite quantities. In explaining the production possibility frontier, using the same content as above, If the cost of other goods and services increases from OGS1 to OGS 2 on the graph, transport cost decreased from T1 to
Question 1 (a) Explain what the term ‘price elasticity of demand’ means, making use of appropriate Examples. Price elasticity of demand illiterates the change in quantity demanded as price changes. Elasticity is the responsiveness of how a simple change in one variable can escalate another change in particular the change in demand and supply. The formula for calculating the price elastic demand is Price Elasticity of Demand = % ∆ In Quantity Demand / % ∆ In Price. Relating to Price elasticity demand
the production possibilities frontier (PPF) is also very important to production. The PPF is related to what goods are produced which depends on whether the economic system is based on capitalism or whether it is based on socialism. What goods will be produced in a capitalist economic system Is determined by what the market wants. As an example if the buyers and sellers want more computers, televisions, automobiles. houses, and entertainment or food to be produced, then the production of these
Resource Allocation: An Economic Problem Selected Issue and Background The issue, which I have chosen to investigate, is the allocation of resources, which are primarily money, by a local authority, namely the City of Westminster Council. The reason why this allocation of resources has become an economic problem is because money is a finite resource, so therefore there is scarcity and the council have to make choices as to how to allocate the resources they have been given. This type of resource
Sugar has been both Cuba’s greatest blessing and curse. Cuba’s sugar frontier was able to develop due to its environment, technology, and slave labor availability. It became an everyday lifestyle for the people that inhabited it. The failures of other industries in Cuba accelerated the growth of a booming sugar crop that lasted many decades and allowed for Cuba to become more prominent in the world. Despite the extreme success of the sugar industry in Cuba, it eventually fell due to societal,
economic efficiencies and the result in the decline of the social welfare at its maximum level. Economic efficiency involves in three efficiencies; efficiency in production, efficiency in the production of goods among the people, which it is also called efficiency of consumption, and allocative economic efficiency that’s in the direction of production efficiency.
the theory of comparative advantage if a country has an advantage in producing some product it means that country is considered the most efficient country to produce that particular product. In other words if a country use the same inputs in their production process for a specific good, then that country can produce more and better quality of that goods compared to all the other countries. The following data describes the simplified form of the above mentioned theory: Australia China Natural Gas 40
The Last Frontier of the United States The last frontier of the United States was a great time period where Americans and immigrants from around the world came and settled for new land. It was a time where the federal government encouraged western settlement and economic exploitation. The United States of America came of age after the civil war. In a period of less than fifty years, it was transformed from a rural republic to an urban state. The frontier had vanished. Great factories and steel
The western frontier offered the possibility of independence and the government had intention made certain actions to promote such a monumental movement across America. Not only this but America's diplomacy skills had been proven over the course of the past half century. To begin
Economics 2.4 Internal Frannie Aquino A recession is a period of temporary economic decline during which trade and industrial activity are reduced. In 2008-2009, New Zealand was in recession. This can be seen with the Department of Labor figures, where the percentage change in GDP was at -1.25%, which means that output was falling. When in recession, unemployment increases because household incomes, business profits and GDP decrease, so unemployment is increased because of the global recession. Since
the demand for catsup would decrease. c. the demand for hamburger rolls would decrease. d. All of the above. e. None of the above. 9. The conventional bowed-out shape of the production possibilities curve implies a. producers are unable to utilize specialized resources efficiently. b. shifting production from one good to another leads to increasing opportunity costs. c.