What is a production possibility frontier?

A production possibility frontier, or PPF, is a line showing the maximum level of output in an economy of one good or group of goods in terms of another. At any point on this line, the economy is operating at full capacity and resources are being used to their greatest potential. Any point inside the PPF displays poor use of resources and economic ineficiency. It is not possible to operate outside the PPF, although it can shift outwards due to other factors such as technological advancements or population growth. Movements along the PPF occur due to changes in the combinations of goods being produced, showing opportunity costs.

HH
Answered by Harry H. Economics tutor

2567 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

Explain price elasticity of demand


What affect does increasing demand have on price levels and consumer surplus?


Explain what a supply shock is, using a relevant example.


With the help of a diagram, explain the cause of demand-deficient unemployment.


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning