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PPC: The abbreviation for production possibilities curve, which is a curve that illustrates the production possibilities for the economy. A production possibilities curve represents the boundary or frontier of the economy's production capabilities. That's why it's also frequently termed a production possibilities frontier (or PPF). As a frontier, it is the maximum production possible given existing (fixed) resources and technology. Producing on the curve means resources are fully employed, while producing inside the curve means resources are unemployed. The law of increasing opportunity cost is what gives the curve its distinctive convex shape.
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Lesson 8: Market Shocks | Unit 4: Double Shifts
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Page: 15 of 20
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Topic:
Less Demand and Less Supply
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Here we have demand decreasing (tastes change) and supply decreasing (number of sellers declines).- A decrease in demand causes a decrease in both price and quantity.
- A decrease supply causes price to increase and quantity to decrease.
- The combined effect is an obvious decrease in quantity but a questionable change in price.
- At the new equilibrium the price is indeterminant.
- If both demand and supply curve shift in the same direction, then quantity also changes in that direction, but price is indeterminant.
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LIMITED LIABILITY A condition in which owners of a business are not personally held responsible for the debts created by the business. Corporations are the most noted types of business organizations in which owners have limited liability. Limited liability makes it possible for a business to accumulate large sums of money and thus to take advantage of large scale production. The alternative to limited liability is unlimited liability, a characteristic of proprietorships and partnerships.
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BLUE PLACIDOLA
[What's This?]
Today, you are likely to spend a great deal of time waiting for visits from door-to-door solicitors wanting to buy either decorative celebrity figurines or a flower arrangement with anything but tulips for your grandfather. Be on the lookout for spoiled cheese hiding under your bed hatching conspiracies against humanity.
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More money is spent on gardening than on any other hobby.
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"It is not because things are difficult that we do not dare; it is because we do not dare that they are difficult. " -- Seneca, statesman, dramatist, philosopher
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MFN
Most-Favoured Nation
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