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

5979 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Consider Donald Trump chooses to raise import tariffs on Chinese Goods, what will be the impact on the US macroeconomic environment?


Assess the importance of education and training to improve labour productivity in the UK.


Why does a rise in interest rates lead to a fall in inflation?


Discuss the perfect competition model?


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:

© 2026 by IXL Learning