(1) Definition of PPF & “Terms of Trade”
Production Possibilities Frontier
Production Possibilities Frontier, PPF, Terms of Trade, Scarcity, Trade Offs
This provides an overview of the basics of the Production Possibilities Frontier. It introduces concepts of scarcity and trade offs.
Crane, Steven E., "(1) Definition of PPF & “Terms of Trade”" (2010). Principles of Microeconomics. Paper 1.
Ability to Read/Interpret a PPF Graph. Ability to explain slope as trade off or terms of trade.