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    Hello everyone,

    I am currently revising for OCR Economics (Markets in Action) and wanted to ask if it matters how we draw the PPC - for example, must one use either straight lines or curves at certain times or can both be used for all questions which require a PPC to be drawn?

    If it does, could someone tell me when I am supposed to use each one?

    Thanks and good luck for your exams
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    (Original post by L'Etudiant)
    Hello everyone,

    I am currently revising for OCR Economics (Markets in Action) and wanted to ask if it matters how we draw the PPC - for example, must one use either straight lines or curves at certain times or can both be used for all questions which require a PPC to be drawn?

    If it does, could someone tell me when I am supposed to use each one?

    Thanks and good luck for your exams

    The Production Possibility Frontier/Curve depends on the nature of the division of labour and the technology. Its normally either a straight line or a convex curve.
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    (Original post by cole-slaw)
    The Production Possibility Frontier/Curve depends on the nature of the division of labour and the technology. Its normally either a straight line or a convex curve.
    Thank you very much for your reply, Cole-Slaw

    Okay, could you please tell me when I am supposed to use a Straight Line and when I am supposed to use a Convex curve?
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    Somebody, please?
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    (Original post by L'Etudiant)
    Thank you very much for your reply, Cole-Slaw

    Okay, could you please tell me when I am supposed to use a Straight Line and when I am supposed to use a Convex curve?
    Well, think about what it shows.

    A straight line means that the rate of change is constant. An increase in 1 of one of the items always always leads to a decrease of x on the other axis . It doesn't matter if you're moving from producing 1 to producing 2, or moving from producing 857 to 858. It's always the same increase (this does not necessarily mean 1. It could always be 4 or 25 or 0.6) in the other one.

    A curve means that the gradient is constantly changing. An increase in one axis from 1 to 2 will result in a change of the other of x, but from 857 to 858 it will be y. The curve might be a nice smooth curve and follow an easy pattern, or it could be something more exciting.

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    (Original post by Juno)
    Well, think about what it shows.

    A straight line means that the rate of change is constant. An increase in 1 of one of the items always always leads to a decrease of x on the other axis . It doesn't matter if you're moving from producing 1 to producing 2, or moving from producing 857 to 858. It's always the same increase (this does not necessarily mean 1. It could always be 4 or 25 or 0.6) in the other one.

    A curve means that the gradient is constantly changing. An increase in one axis from 1 to 2 will result in a change of the other of x, but from 857 to 858 it will be y. The curve might be a nice smooth curve and follow an easy pattern, or it could be something more exciting.

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    Thank you very much for your reply, Juno!

    1) So, for example if the PPC represented something along the lines of how a certain firm will use £1 million pounds for investment, it will be a straight line? (Assuming both items cost the same and cannot be bought 'partially'.
    2) If used to represent Government Spending on Healthcare and Defence it will be a curve as it is simply a simplified model without as much information as the one above? (Less details about exact cost etc.)
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    The linear straight line curve is good to represent opportunity cost, the curve one is more realistic, the opportunity cost gets a lot greater when the line gets steeper like the straight line, ppc is used to represent the maximum potential level output of 2 goods and services that an economy can produce given the level of technology, remember it can show, it isn't what the economy is actually producing.
 
 
 
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