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    (Original post by Anonynous)
    Production Possibility Fronteir... Oh the days :P

    It shows the maximum optimal output of the economy, given under the assumption that all the variable inputting factors are operating at maximum efficiency. This relates to the Factors of Production (Land, Labour, Capital & Enterprise).

    The PPF = LRAS essentially, showing the maximum possible output a company is able to produce at.

    Because the PPF shows the maximum, let's take two variables to simplify what it's trying to show.



    Let's assume an entire economy only produces motorbikes and cars. We can associate the X axis with Cars and the Y axis with motorbikes. Now the PPF is showing what the economy can produce with all its factors of production employed.. thus we can assume, if we are to produce at Point C on the curve we will produce C1 cars and C2 motorbikes, as illustrated.

    Now.. if an economy realises there's more money to be made by producing motorbikes, they may decide to distribute the available factors of production towards motorbike manufacturing. This is illustrated by the movement from C->B on the curve. Thus an economy will now only produce B1 amount of cars but B2 amount of motorbikes. I think by now you understand the foundational concept.

    To produce more of one thing, you have to give up the other if all factors are operating at their maximum efficiency. This shows an opportunity cost, as whoever runs this particular economy would have to make a decision as to whether to maintain production at current levels or produce more of one thing in sacrifice of another.

    It resembles scarcity in the fact that there's limited input. There are only a finite number of resources (factors of production: Land, Labour, Capital, Enterprise) in which to work with. So allocating those resources efficiently is vital to the success of an economy.

    The trade-off in this instance would be.. should we manufacture more cars? more motorbikes? or maintain current levels?

    If you want I can briefly explain how the PPF can shift out, as we just talked about movement along the curves for your question.

    If there's anything more you require explaining, don't hesititate to hit me up
    Yaaaaaas! Omg I am buzzing! I actually do understand it now properly!! Thank you so much kar!

    I just love economics so far! So interesting.

    I would definitely make sure.


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    (Original post by missfats)
    Yaaaaaas! Omg I am buzzing! I actually do understand it now properly!! Thank you so much kar!

    I just love economics so far! So interesting.

    I would definitely make sure.


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    Glad to be of service

    It's an amazing subject, you'll love it.
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    (Original post by Anonynous)
    Glad to be of service

    It's an amazing subject, you'll love it.
    Aha yep! Do you have any notes on AS?

    Can you please tell me the best revision websites!
    I know tutor2u.

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    (Original post by missfats)
    Aha yep! Do you have any notes on AS?

    Can you please tell me the best revision websites!
    I know tutor2u.

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    Watch PajHolden's videos on Youtube and Economicshelp online is pretty useful. I don't have any AS notes, although I have a fair few for A2.
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    (Original post by Anonynous)
    Watch PajHolden's videos on Youtube and Economicshelp online is pretty useful. I don't have any AS notes, although I have a fair few for A2.
    Username change?

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    (Original post by Anonynous)
    Watch PajHolden's videos on Youtube and Economicshelp online is pretty useful. I don't have any AS notes, although I have a fair few for A2.
    Watching him now.

    I like him

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    How is there 100 people on my course but only 3 guys :lol:
    Didn't know psychology was so female dominated haha


    Joined a somali soc and a few other socs. Woop woop
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    (Original post by Anonynous)
    University is hella over rated.
    Yeah freshers is too overrated.

    Dont like your new name change btw. You should've chosen something witty
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    (Original post by Anonynous)
    Watch PajHolden's videos on Youtube and Economicshelp online is pretty useful. I don't have any AS notes, although I have a fair few for A2.
    How'd you get your name changed? I kinda want to get mine changed too.
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    How did i spend 100 pounds for only 6 items please? Urgh and I stil havent got everything. >.<. Hows everyone been doing?

    Enrolling Uni in two days and trying to buy everything last minute. Today was in town for over 6 hours. And going back again tomorrow. Who knew starting Uni would be stressful.

    Cant wait to get this over and done with and just start it.
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    (Original post by HeavyTeddy)
    How'd you get your name changed? I kinda want to get mine changed too.
    You cant unless your current username is your actual name lol
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    (Original post by Secretnerd123)
    You cant unless your current username is your actual name lol
    Well that's annoying. I wanted to get it changed because most of my friends know my username (it's my PSN), so it's fairly easy for them to recognise me on TSR.
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    (Original post by Aniga)
    Not too bad. And yourself?
    Good alhamdulilah just watched British Bake Off lool I enjoy that show
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    (Original post by AnimeCrazy)
    How did i spend 100 pounds for only 6 items please? Urgh and I stil havent got everything. >.<. Hows everyone been doing?

    Enrolling Uni in two days and trying to buy everything last minute. Today was in town for over 6 hours. And going back again tomorrow. Who knew starting Uni would be stressful.

    Cant wait to get this over and done with and just start it.

    Lol I hate shopping, wow you spent a lot of money. All I need is probably some notepads and that's it lool I defos will not be spending anywhere near as that.

    Good luck for you ntu enrolment in sha allah you have fun hun
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    (Original post by DarkMystryXxX)
    In Sha Allah hun Aww I have not even started yet, so I have no clue how it will be like.
    How many socs are you thinking of joining m'love?
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    (Original post by JuliusSeizure)
    Username change?

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    Yeah, because of the field I want to go into, too many people know who I am at events and I don't want HR finding my online mishaps when applying for things.

    (Original post by Secretnerd123)
    Yeah freshers is too overrated.

    Dont like your new name change btw. You should've chosen something witty
    Lool, I'm not a very creative person.

    (Original post by HeavyTeddy)
    How'd you get your name changed? I kinda want to get mine changed too.
    Met a mod at a networking careers fair a couple of days ago and asked him to change it.
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    (Original post by DarkMystryXxX)
    Lol I hate shopping, wow you spent a lot of money. All I need is probably some notepads and that's it lool I defos will not be spending anywhere near as that.

    Good luck for you ntu enrolment in sha allah you have fun hun

    I HATE shopping as well, but i just want to get everything over and done with Got some notepads and pen. Just need to order my laptop now and a bag. I've been working these past two weeks and havent brought any new clothes for the last two years :P I thought this would be the perfect time to splash the money

    AW thanks babe, I hope I have fun too >.<

    When do you start boo?
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    Is that AK? How did ya find uni SN?
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    (Original post by Aniga)
    Hi everybadyyyyy i'm new here (or am I) so welcome me.
    Salaaaaaaaam Ahmed!
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    (Original post by Chukkeigh)
    Is that AK? How did ya find uni SN?
    It is I.. but I go by a different name now
 
 
 
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