Production Possibilities Frontier curve

Production Possibilities Frontier curve

The Production Possibilities Frontier curve shows the economic choices a country can make about production given scarce resources, a given technology, and a given quantity of inputs.
Assume you are a developing country, producing food and clothing at maximum capacity.
How does scarcity influence the decisions that need to be made about what to produce, how to produce and for whom to produce in this country?
What are some examples of the types of factors of production you would consider expanding if this country produces food and clothing?
What could happen when foreign investors start investing in your country?
Discuss what type of foreign investments would be best for the economy’s PPF.
What are the opportunity costs of these decisions?
Include what will happen to private and public choices as the economy grows.


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