急問...econ問題, production possibitity frontier!

2007-08-14 3:48 am
a natural disaster that creates an economy wide shortage of factors of production required to produce both cars and computers

what is the impact of the PPF?

thanks!!

回答 (1)

2007-08-14 10:12 pm
✔ 最佳答案
We can assume that your case is in short run situation.

The two main determinants of PPF are
production functions (reflecting the available technology)
and available factor endowments (or factors of production).
If the technical know-how improves or the supplies of factors of
production increase, the PPF shifts to the right (upward), raising
the amount of each good that can be produced. A military or ecological
disaster might move the PPF inward and to the left.


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