Wednesday, May 18, 2011

Production Possibilities Curve

Don’t forget to post on our new wiki site for this 4-week cycle. We will use the new Barlow class website’s blog to post articles and comments. Log in using your BarlowX login and password. The winter break assignmnet is to read chapters 1-4 in your AP Macroeconmics textbook.
A production-possibility curve is a graph that shows the different rates of production of two goods or services that an economy can produce efficiently during a specified period of time with a limited quantity of productive resources or factors of production. The PPF shows the maximum amount of one product that can be obtained for any specified production level of the other product given the technology and the amount of factors of production available.

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