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    An Intro To PPF: Click To Edit Master Title Style

    Uploaded by

    davidsun.nz

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    An Intro To PPF: Click To Edit Master Title Style

    Uploaded by

    davidsun.nz
    1 views10 pages

    Original Title

    PPF

    Copyright

    © © All Rights Reserved

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    PPTX, PDF, TXT or read online from Scribd

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    Copyright:

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    Download as pptx, pdf, or txt
    1 views10 pages

    An Intro To PPF: Click To Edit Master Title Style

    Uploaded by

    davidsun.nz

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 10

    Click to edit Master title style

    An Intro to
    PPF
    David Sun

    1
    Click to edit Master title style

    What Is PPF?
    • The ultimate issue of scarcity
    • The necessity to make a choice
    • To p r o d u c e m o r e A , o n e m u s t p r o d u c e
    less B (what we must give up is called
    Opportunity Cost)
    • PPF(Production Possibility Frontier)
    represents all maximum potential output
    combinations of two economic goods
    that can be produced when an economy
    is employing all its resources efficiently
    2 2
    Click to edit Master title style

    The Problem of Scarcity

    3 3
    An Example
    Click of PPF title style
    to edit Master

    Scenario Rabbits Berries


    (000s) (000s)
    1200
    A 0 1050
    Not achievable
    1000
    B 1 1000 Pr
    od
    uc
    800 tiv
    C 2 900 ely
    eff
    ici

    Berries
    D 3 750
    600 en
    t
    Achievable
    400
    E 4 550 but inefficient

    200
    F 5 300
    0
    G 6 0 0 1 2 3 4 5 6 7

    Rabbits
    4 4
    Click to edit Master title style

    Opportunity Costs

    5 5
    An Example
    Click of PPF title style
    to edit Master
    Increasing Opportunity Costs (Diminishing Returns)

    Scenario Rabbits Berries OC


    (000s) (000s)
    1200
    A 0 1050 -
    1000
    B 1 1000 50
    800
    C 2 900 100

    Berries
    600
    D 3 750 150
    400
    E 4 550 200
    200 ing O C
    F 5 300 250 reas
    Inc
    0
    G 6 0 300 0 1 2 3 4 5 6 7

    Rabbits
    6 6
    Click to edit Master title style

    Economic Growth or Decline

    7 7
    An Example
    Click of PPF title style
    to edit Master
    Economic Growth (an increase in the quantity/quality of production factors)

    Scenari Rabbits Berries


    o (000s) (000s)
    1600
    A 0 1400
    1400
    B 1 1350
    1200

    C 2 1250 Not achievable


    1000 Achievable

    Berries
    D 3 1100 800

    600
    E 4 900
    400

    F 5 650 200

    G 6 350 0
    0 1 2 3 4 5 6 7 8

    Rabbits
    H 7 0 8 8
    An Example
    Click of PPF title style
    to edit Master
    Economic Decline (a decrease in the quantity/quality of production factors)

    Scenari Rabbits Berries


    o (000s) (000s)
    1200
    A 0 750

    B 1 700 1000 Achievable


    Not achievable but inefficient
    800
    C 2 600

    Berries
    D 3 450 600

    E 4 250 400

    F 5 0 200

    0
    0 1 2 3 4 5 6 7

    Rabbits
    9 9
    Click to edit Master title style

    Thank You

    10

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