What happens to the Production Possibility Frontier (PPF) when productivity only increases in one good?

We start here with an initial PPF which shows the possible combinations of apples and computers that an economy can produce with the resources it has. If a new way of creating computer chips makes the computer industry more productive and the apple farming industry is unaffected, then the PPF will move out in the direction of computer production, but not in apple production.

Answered by Matthew D. Economics tutor

5166 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What is comparative advantage?


Discuss how lower interest rates can affect an economy such as the UK.


What are the potential disadvantages of Trades Unions?


What are the Macroeconomic Effects of Currency Fluctuations?


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo
Cookie Preferences