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Question
Give the meaning and characteristics of production possibility frontier.
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Solution
Meaning: Production possibility frontier (PPF) means the geographical representation of possible combinations of two goods which can be produced with given resources and technology.
Feature: It slopes downwards because if more of one good can be produced only by taking resources away from the production of another good. Hence, there exists the inverse relationship between change in quantity in one commodity and change in another commodity. It shifts from left to right.
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