What is another name for production possibility curve?
The PPF is also referred to as the production possibility curve or the transformation curve.
What does a production curve demonstrate?
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 the synonym for production?
manufacture, manufacturing, making, producing, construction, building, fabrication, assembly, creation.
What is meant by the term the production possibility?
Definition: Production possibilities frontier (PPF), also known as production possibility curve, indicates the maximum output combinations of two goods or services an economy can achieve by fully using all available resources efficiently.
Why PPC is also called transformation curve?
The PPC also called transformation curve because in moving from one point to another on it, one good is ‘transformed’ into another not physically but by transferring resources from one use to the another.
What moves the production possibility curve?
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 labor force.
What are the properties of production possibility curve?
The two basic property of production possibility curve are: It slopes downward from left to right- Production possibility curve slopes downward because both the variables involve in the equation are inversely related as one increase then other one decreases and vice versa because the resources are constant.
What is production antonym?
Opposite of the action of making or manufacturing from components or raw materials. destruction. wrecking. demolition. dismantling.
What is a synonym for factors of production?
The definition of factor of production in the dictionary is a resource or input entering the production of wealth, such as land, labour, capital, etc Also called: agent of production.
Why is production possibility curve concave?
Production Possibility Curve (PPC) is concave to the origin because of the increasing opportunity cost. As we move down along the PPC, to produce each additional unit of one good, more and more units of other good need to be sacrificed. And this causes the concave shape of PPC.
What is production possibility curve explain it with the help of a diagram?
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 is a production possibility curve and what does it show?
In economics, a production possibilities curve is a graphical model that shows the trade-offs facing an economy with a given level of production technology and finite resources.
What does production possibilities curve indicate?
Definition: Production possibilities frontier (PPF), also known as production possibility curve, indicates the maximum output combinations of two goods or services an economy can achieve by fully using all available resources efficiently.
What does the production possibilities curve tell us?
The production possibilities curve tells us: the combinations of two goods that can be produced with society’s available resources. The production possibilities curve has: a negative slope that increases as we move along it from left to right.
What is the definition of production possibilities curve?
The production possibility curves is a hypothetical representation of the amount of two different goods that can be obtained by shifting resources from the production of one, to the production of the other.