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  1. #1
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    Is production outside of the PPF curve ever possible?

    In my MacroEcon class, my professor is trying to say that during WWII, U.S. economy is producing at a point beyond production possibility frontier. I wanted to slap him across his face. Can anybody agree/disagree with that?
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  2. #2
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    ttt
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  3. #3
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    I believe it is, but only temporarily. The PPF is about sustainable levels of production.
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    Only for a brief time it is possible to produce outside of the curve.
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  5. #5
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    Originally Posted by peijian View Post
    In my MacroEcon class, my professor is trying to say that during WWII, U.S. economy is producing at a point beyond production possibility frontier. I wanted to slap him across his face. Can anybody agree/disagree with that?
    I think the general consenus is that with gov't intervention it is possible in the short term
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  6. #6
    Banned bawka's Avatar
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    lol peijian arent you the guy who dissed ur friend and misc detectives alterted your friend of your actions? how did that turn out?
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    FUUUUUU, I just can't wrap my mind around how that is possible. I mean, in order to produce ON the PPF, you'd have to be at 100% efficiency(100% employment, production output @ 1005, etc) then how is it possible to produce beyond 100% efficiency, even for just momentarily?





    mind = confused.
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    Originally Posted by bawka View Post
    lol peijian arent you the guy who dissed ur friend and misc detectives alterted your friend of your actions? how did that turn out?
    we laughed it off, but i still feel bad. (no homo)
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  9. #9
    Registered User gatordukie's Avatar
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    iThe key is that it is a 100% sustained level.

    im 12 and what is this
    .
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  10. #10
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    Originally Posted by peijian View Post
    FUUUUUU, I just can't wrap my mind around how that is possible. I mean, in order to produce ON the PPF, you'd have to be at 100% efficiency(100% employment, production output @ 1005, etc) then how is it possible to produce beyond 100% efficiency, even for just momentarily?





    mind = confused.
    silly bass hole, its about scope and that scope is around sustainability
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  11. #11
    Registered User Barbarian440's Avatar
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    Originally Posted by gatordukie View Post
    iThe key is that it is a 100% sustained level.

    im 12 and what is this
    Exactly. You could pull 16 hour days for some weeks building boats and tanks but eventually something has to give.
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  12. #12
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    The only thing I even remember from ECON is that it is never possible to produce outside of the PPF. Since there are not enough resources or laborers. You can produce inside of it though.
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