1、1,Production Possibilities Frontier,Describe the production possibilities frontier and explain its shape.Explain what causes the production possibilities frontier to shift.,Objectives,2,Production Possibilities Frontier,production possibilities frontier (PPF)efficiencyeconomic growth,Key Terms,3,Eff
2、iciency and Production Possibilities Frontier,AssumptionsProduction Possibilities Frontier Inefficient productionUnachievable production,4,Production Possibilities Frontier,A through F are attainable W represents inefficient use of resourcesPoints to the right of the PPF represent unattainable combinations,Capital Goods,ConsumerGoods,5,Shifts in the PPF,Changes in resource availabilityIncreases in stock of capital goodsTechnological change,6,Shifts in the PPF,Increase in economic growth,
