Define the term PPF and illustrate it.
A PPF (Production Possibility Frontier) is a curve showing the maximum combinations of two goods and services produced over a period of time, with all available resources used at maximum efficiency.
(Diagram would be used here).
LG
Related Economics GCSE answers
All answers ▸How can I learn to memorise all the different market structures?
Explain, using an example, what is meant by 'opportunity cost'?
8 What is likely to happen when the rate of interest increases? A) consumer spending increases B) firms buy fewer machines C) people hold more cash D) savers earn lower rewards
What is opportunity cost