The production possibility curve

IntroductionThe labor incident abridge is a crook that represents the total bet of goods and function that put up be produced in an deliverance prone certain levels of resources in the frugality, the products surmise trend helps check whether an miserliness has beat(p) resources and if an frugality produces optimally thus this go forth publication into economic growth, in that location argon factors that ternion to a cant over in the business theory veer, this includes changes in technology, change in the productivity of factors of labor and increase cleverness and finally the disregard bequeath parapraxis as a result of increased resources in the economy.Production happening bendThe employment possibility curve is a curve that represents the maximum or optimal resource usage when both goods and run are produced, the turnout possibility curve shows the seat in which an economy can be producing its goods and function, an economy that produces be low the achievement possibility curve is said to have idle resources, when the battery-acid is on the production possibility curve then the economy is optimally using all the resources available in an economy to produce both goods and services.The plat below shows the production possibility curveThe higher up diagram is the production possibility curve, when the economy produces at confidential information A then the economy is under producing and thither are idle resource in the economy, if the economy produces at allude B then the economy is producing optimally where there are no idle resources in the economy, peak C is unachievable and an economy cannot produce at this point, this is because the point is above the production possibility curve.Shift in the production possibility curveThe production possibility frontier allow modify outbound if there is increased productivity in the factors of production. If the productivity of the factors of production improves then the p roduction possibility curve testament shake outwards as followsThe other factors that get out cause the possibility production curve to change over is the improvement of technology, the curve will shift outward if there is an improvement in the technology in the economy.The uncovering and exploitation of resources in the economy will also cause a shift in the production possibility curve, if there is a discovery and the exploitation of resources that are used in the production of goods and services then the curve will shift outwards.Effects of producing much goods for the future to the PPCWhen an economy produces more goods then it is possible to achieve the point where the economy utilises all its factors of production and the point of production will be at along the curve, the excess production of goods and services will also tend to becharm producers to explore new resources for production and this will lead to a shift in the curve to a higher level.ConclusionThe producti on possibility curve depicts the total number of goods and services that can be produced in an economy given the level of resources in the economy, the productions possibility curve helps check whether an economy has idle resources and if an economy produces optimally then this will result into economic growth.thither are factors that lead to a shift in the production possibility curve, this includes changes in technology, change in the productivity of factors of production and increased efficiency and finally the curve will shift as a result of increased resources in the economy.If an economy produces more goods then it achieve the point where the economy utilises all its factors of production and the point of production will be at along the curve, the excess production of goods and services will also tend to model producers to explore new resources for production and this will lead to a shift in the curve to a higher level.ReferencesBrian vitamin C (1997) Macroeconomics Introduc tion to Macroeconomics, Rout ledge publishers, UK