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

5765 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Explain how to calculate Price Elasticity of Demand


What are the determinants of Demand? What is the effect of a change in the determinants of demand?


Discuss‘looserfiscalpolicy’and‘supply-sidereforms’ that may be used by governments of Eurozone countries to increase economic growth.


Explain some benefits of a Monopoly


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