What is PPF in Economics?

 PRODUCTION POSSIBILITY FRONTIER (PPF)

 A GRAPH THAT SHOWS ALL THE COMBINATIONS OF GOODS AND
SERVICES THAT CAN BE PRODUCED IF ALL OF SOCIETY'S RESOURCES
ARE USED EFFICIENTLY.

Production–possibility frontier - Wikipedia

The Production Possibilities Frontier (PPF) is a graph that shows all the different combinations of output of two goods that can be produced using available resources and technology. The PPF captures the concepts of scarcity, choice, and tradeoffs.

Comments

Post a Comment

Popular posts from this blog

Japanese number system From 1-70

Image
  Numbers in Japanese 1 ichi 2 ni 3 san 4 yon / shi 5 go 6 roku 7 nana / shichi 8 hachi 9 kyuu / ku 10 juu Ichi, Ni, San, Yon, Go, Roku, Nana, Hachi, Kyuu, Juu   1,     2,     3,     4,     5,      6,        7,         8,          9,      10 Ichi, Ni,   San, Shi, Go, Roku, Shichi, Hachi, Ku,   Juu 11 Juu ichi 12 Juu ni 13 Juu san 14 Juu yon 15 Juu go 16 Juu roku 17 Juu nana 18 Juu hachi 19 Juu kyuu 20 Ni juu 21 Ni juu ichi 22 Ni juu ni 23 Ni juu san 24 Ni juu yon 25 Ni juu go 36 San juu roku 47 Yon juu nana 58 Go juu hachi 69 Roku Juu kyuu 70 Nana juu
Read more

What is Supply in Economics?

Image
 What is Supply in Economics? Quantity supplied is the amount of a good that sellers are willing and able to sell. In economics, supply is the amount of a resource that firms, producers, labourers, providers of financial assets, or other economic agents are willing and able to provide to the marketplace or to an individual. Supply can be in produced goods, labour time, raw materials, or any other scarce or valuable object. Supply is often plotted graphically as a supply curve , with the price per unit on the vertical axis and quantity supplied as a function of price on the horizontal axis. This reversal of the usual position of the dependent variable and the independent variable is an unfortunate but standard convention. The supply curve can be either for an individual seller or for the market as a whole, adding up the quantity supplied by all sellers. The quantity supplied is for a particular time period (e.g., the tons of steel a firm would supply in a year), but the units
Read more

What is Surplus in Economics?

When the price is above the equilibrium price, the quantity supplied exceeds the quantity demanded. There is excess supply or a surplus. Suppliers will lower the price to increase sales, thereby moving toward equilibrium. In mainstream economics, economic surplus , also known as total welfare or total social welfare or Marshallian surplus (after Alfred Marshall), is either of two related quantities: Consumer surplus , or consumers' surplus , is the monetary gain obtained by consumers because they are able to purchase a product for a price that is less than the highest price that they would be willing to pay. Producer surplus , or producers' surplus , is the amount that producers benefit by selling at a market price that is higher than the least that they would be willing to sell for; this is roughly equal to profit (since producers are not normally willing to sell at a loss and are normally indifferent to selling at a break-even price). A surplus describes the amount of an
Read more