Production Possibility Frontier
The Production Possibility Frontier (PPF), also called the Production Possibility Curve (PPC), illustrates the maximum production levels of two goods an economy can achieve given its resources and technology, assuming full employment. Points on the frontier are productively efficient; points inside are inefficient; points outside are unattainable.
Real World
After reunification in 1990, Germany's PPF shifted outward as East German labour, factories, and land were integrated into the economy, expanding the country's productive capacity.
Exam Focus
Label axes, show the shift direction clearly, and explain whether the shift is caused by supply-side or demand-side factors.
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