Meaning of Each Dot
- A, B, C- Attainable and efficient
- D- Unattainable and inefficient
- E- Unattainable
What Cause PPC/PPG to shift?
- Technological changes
- Δ in resources
- Economic Growth
- Natural Disasters/war/famine
- Δin labor force
- More education: Training (Human Capital)
3 Movement of PPC
- This occurs when resources are unemployed or underemployed
- Inside the Curve
- Along the Curve
- Shifts of PPC
A much simple way I remember the Movements of the PPC is by:
ReplyDelete*Inside the curve--> attainable but inefficient
*On curve -->Attainable efficient
*Outside the curve --> unattainable (future)
An easy way to remember the points, is that outside is future and look out to look for the future and you look in to see the past or inside the curve.
ReplyDelete