b) Economic output

a) the use of production possibility frontiers to depict:

• economic growth or decline

b) the distinction between movements along and shifts in production possibility curves, considering the possible causes for such changes

PPF graphs represent economic decline or growth

• a shift of the PPF curve inwards represents…

  • a decrease in the quantity or quality of the factors of production

  • a decrease in the maximum productive potential of the economy

  • less capital and consumer goods produced

  • economic decline

• a shift in the PPF curve inwards represents…

  • an increase in the quantity or quality of the factors of production

  • an increase in the maximum productive potential of the economy

  • more capital and consumer goods produced

  • economic growth