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Economics PPC Written Assessment
Economics PPC Written Assessment
Economics PPC Written Assessment
Instead of Toys and Calculators, I will be talking about Clothing and Accessories. On
the PPC diagram, an allocation of resources is shown by the different points on the
diagram. At point A, the resources are fully allocated to the production of clothing,
while no accessories are being produced. When changing to point C, an allocation of
resources from 100 to 75 to the production of clothing is giving up 25 units of
resources to the production of accessories. At point D, an even greater allocation of
resources is done and now more resources are assigned to produce accessories. At
point B, all of the resources are allocated to the production of accessories, while no
resources are allocated to produce clothing. At point E, the resources are not all in use,
not enabling the full potential of those production resources. And finally, at point F,
the economy cannot produce to that point, it is unattainable.
3) Several factors can influence Germany's Production Possibility Curve (PPC). Changes
in technology, through innovations and advancements, can enhance productivity,
shifting the PPC outward. Similarly, improvements in education and workforce skills
contribute to increased efficiency, expanding the production frontier. Economic
policies, such as investment in infrastructure or changes in taxation, can also impact
the PPC by affecting resource allocation and production capacities. Additionally,
shifts in resource availability, such as changes in natural resource reserves or
alterations in labour force demographics, can influence the PPC. Moreover,
international trade dynamics, including shifts in global demand and supply chains, can
reshape Germany's PPC by altering the composition of its exports and imports.
Overall, a combination of technological, economic, demographic, and global factors
plays a role in shaping Germany's Production Possibility Curve.