The Production Possibilities Model

The Production Possibilities Model is one of the first Economic
Models students learn about. Please refer to the material
covered in the topic called The Economizing Problem.
• Please explain 2 things the model teaches us.
• Please explain each of the 4 assumptions of the
model.
• Please explain Productive Efficiency and how it relates
to the ppc.
• Please explain Allocative Efficiency and provide a
thorough explanation of the 2-step process for finding
the point of allocative efficiency on the PPC.
• On the topic of Economic growth: need to see some
detail here.
i. What does it mean?
ii. How can it be graphically represented?
iii. What are the prerequisites to Economic growth?
iv. GDP growth rates in America for the past 60 years
show a steady downward trend. Use what you
have learned about Economics to explain why
you should care about that.
v. Why is Economic growth good for you and your
country? Please be thorough.
vi. Why is Economic growth bad for you and your
country? Please be thorough