What happens to the Production Possibility Frontier (PPF) when productivity only increases in one good?

We start here with an initial PPF which shows the possible combinations of apples and computers that an economy can produce with the resources it has. If a new way of creating computer chips makes the computer industry more productive and the apple farming industry is unaffected, then the PPF will move out in the direction of computer production, but not in apple production.

MD
Answered by Matthew D. Economics tutor

5614 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Comment on the long and short term cross-price elasticity of demand for petrol and diesel.


Why is the demand for a Ford Car more 'elastic' than the demand for petrol?


Economics A-Level: What is the difference between traditional economic theory and the new approach to behavioural eocnomics?


Why do higher interest rates cause the exchange rate of a currency to rise?


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