4.1.1.5 ~ Production Possibility Diagrams

• What does PPF stand for?

  Production, possibility and frontier
• What happens at D?

  • Contraction

  
• What happens at E?

  • Expansion

  
• Why might the PPF diagram contract?

  • War, famine & lockdown etc
• Why might the PPF diagram expand?

  • Tech advancements, discovery of oil etc
• What is it called when a point sits on the frontier?

  Productive efficiency