What PPF is important

The importance of PPF

(i) The PPF can be used to illustrate two very important economic concepts-

• Scarcity and 
• Opportunity cost.

(ii) The PPF illustrates Underemployment, Economic expansion and economic growth.

(iii) The PPF is extremely important in describing a range of economic phenomena.

(iv) Production possibility frontier or curve is an important concept of modern economics.

(v) PPF concept is used to explain the various economic problems and theories.

(vi) A production possibility Frontier (PPF) shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently employed.

(vii) The main uses of the production possibility curve are- 

• Unemployment 
• Technological progress 
• Economic growth 
• Present goods Vs Future goods 
• Economic Efficiency 
• Economizing Resources