International Economic

Group 3 (United Kingdom)

Class MGT IB-2
Member Name:
1. Abdurrohman Rangga Mu’min Handayani (014202100025)
2. Frentis Pratama Kipang Suka (014202100001)
3. Raden Ayu Fadiah Ali (0142021000107)
4. Lavenia (014202100037)

1. What is the definition of a specific factor model?

Answer:
The specific factor model assumes that an economy produces two goods using two factors
of production, capital and labor, in a perfectly competitive market. One of the two factors
of production, typically capital, is assumed to be specific to a particular industry.

2. How specific factors model possible to influence revenue distributions in your country?
Answer:
The specific factor (SF) model is designed to evaluate the real-world phenomenon that
some factors of production are more mobile between industries than others. All of the
factors of production contribute to economic United Kingdom. No product can be made
without raw materials (land). Those materials can't be extracted, refined, and transformed
without people working (labor). Those people can't accomplish their work without tools
and equipment (capital).

3. What is the definition of production possibility frontier?

Answer:
The Production Possibilities Frontier (PPF) is a graph that shows all the different
combinations of output of two goods that can be produced using available resources and
technology. The PPF captures the concepts of scarcity, choice, and tradeoffs.

4. Give the example and explanation how is the implementation of production possibility
frontier in your country?
Answer:
A telecommunications company in the UK developed a new technology that can
accelerate operator performance, the results will also increase. These new technological
upgrades will shift the curve outward as long as other upgrading factors are held constant.
On the other hand, the curve can also shift inward during times of economic hardship.