Step 2: What are the general concepts here?

If you look at the question, what you are asked to do construction a production possibilities frontier (a PPF) from the information in the problem, and then use it to answer some additional questions.

Before you can proceed, you need to have absorbed so basic information about the concept of the PPF.

What is the definition of a PPF?

What are the units of measurement on the axes?

What does it's graph look like?

When you think you have all of the answers in mind, then move on to the next page.

go back to problem page