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

5798 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Explain why a rise in investment should help to increase the rate of growth of the UK economy


What are some common points I can use in 15 an 25 mark questions?


How does an increase in the interest rate affect the level of investment?


What is producer surplus and when might it change?


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