Practice question · Sort into groups
Sort each event by what it does to a nation’s PPF.
Groups: Shifts outward · Shifts inward · Movement along the curve
- Reallocating workers from farms to factories
- A general-purpose technology like electricity
- An earthquake destroys factories
- A wave of skilled immigration
Hints
- Ask whether what is possible changed, or only what was chosen.
- Choosing differently moves along the curve without redrawing it.
Show the answer
Shifts outward: A wave of skilled immigration, A general-purpose technology like electricity
Shifts inward: An earthquake destroys factories
Movement along the curve: Reallocating workers from farms to factories
Why
Changing what you pick moves along the frontier; changing what is possible, resources or technology, moves the frontier itself.
Practise The Production Possibilities Frontier
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More questions on The Production Possibilities Frontier
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