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Production Possibilities Frontier

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Production Possibilities Frontier Can't Post
Could a nation's production possibilities frontier ever shift inward? Discuss whatever might cause such a shift to occur.

Any help to this question would be greatly appreciated!


(This post was edited by addysdaddy2 on Mar 13, 2008, 6:22 PM)
addysdaddy2
Teller

Mar 13, 2008, 4:42 PM

Post #1 of 4 (2994 views)

Re: [addysdaddy2] Production Possibilities Frontier [In reply to] Can't Post
Yes it could.

Certain factors that may shift the entire curve inward include: a loss of production facilities (maybe disaster etc.) Major loss of labor force, loss of both production in puts. REmember, that the shifts of the production frontier do'nt occur when you have a different combination of inputs.

econmod
Broker / Moderator

Mar 14, 2008, 8:39 AM

Post #2 of 4 (2961 views)

Re: [addysdaddy2] Production Possibilities Frontier [In reply to] Can't Post
In his 2001 book, Time and Money, Roger Garrison of Auburn University asserts that, during boom times, the economy can produce outside the PPF. In his 2004 paper, Critique of Austrian Economics, Victor Aguilar argues against this position. Visit www.axiomaticeconomics.com/critiques.php to read his Critique.

Aguilar has offered Garrison $1000 to rebut his Critique of Austrian Economics. Garrison is scheduled to accept this challenge by posting his rebuttal at www.axiomaticeconomics.com/rebuttals.php at the end of this month.

Stay tuned! Aguilar is determined to see Garrison defend his theory. It will be interesting to see which economist winds up looking like this Pirate and which one like this Cool!

onion eater
Teller

Jun 8, 2008, 6:48 PM

Post #3 of 4 (2903 views)

Re: [onion eater] Production Possibilities Frontier [In reply to] Can't Post
I love it when economists duke it out. Too bad they all have skinny arms.

econmod
Broker / Moderator

Jun 9, 2008, 9:21 AM

Post #4 of 4 (2901 views)

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