How to make a payback graph?
How to Make a Payback Graph. Open Microsoft Excel. Click on an empty cell. Click on an empty cell and type the title of the graph in the cell. Type the amount owed in the cell directly below the title. Subtract the monthly payback amount from the total amount and press the “Enter” key.
What is the best way to make a graph?
To get started:
- Open a new PowerPoint document
- Go to the Insert tab and click SmartArt
- Navigate to the Hierarchy group and select the org chart template you need
- Click into the shapes to add text
- Add more shapes (or people) as needed
What is the production possibilities frontier model?
The entire production possibilities frontier may shift outward for one of three main reasons:
- There are more inputs available for production
- The quality of productive inputs increases
- “Unbiased” technological change improves our productive ability in both industries. (An example of unbiased technological change is the personal computer, which is used in almost every sector of the economy).
How much percentage is given by PPF?
The PPF(Public Provident Fund) interest rate is fixed by the Finance Ministry every quarter. The current PPF interest rate is 7.9%. And, though the interest is calculated every month, it gets credited to your account on 31st March every year. Also, the PPF interest is calculated on the minimum balance between the fifth and the last day of the month.
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What does a production possibilities graph reveal?
The production possibilities curve (PPC) is a graph that shows all of the different combinations of output that can be produced given current resources and technology. Sometimes called the production possibilities frontier (PPF), the PPC illustrates scarcity and tradeoffs.
How does a PPF graph show economic growth?
Economic growth occurs when an economy's production at the full employment level increases. Increase in the production at the full employment level is shown by an outward shift of production possibility frontier (PPF).
What does a point on the curve of a PPF represent?
In the PPF, all points on the curve are points of maximum productive efficiency (no more output of any good can be achieved from the given inputs without sacrificing output of some good); all points inside the frontier (such as A) can be produced but are productively inefficient; all points outside the curve (such as X ...
What does a production possibilities curve represent quizlet?
What does a production possibilities curve represent? A combination of two goods that can be produced using limited resources.
Which of the following is best described by a PPF?
Which of the following is the best description of the production possibilities frontier (PPF)? The PPF is a curve showing alternative combinations of goods that can be produced when available resources are used efficiently.
How does a production possibilities curve show opportunity cost?
When the PPC is a straight line, opportunity costs are the same no matter how far you move along the curve. When the PPC is concave (bowed out), opportunity costs increase as you move along the curve. When the PPC is convex (bowed in), opportunity costs are decreasing.
When a country's economy grows what happens to a PPF?
The second meaning of economic growth is an increase in what an economy can produce if it is using all its scarce resources. An increase in an economy's productive potential can be shown by an outward shift in the economy's production possibility frontier (PPF).
How does a PPF show opportunity cost?
Opportunity cost can be illustrated by using production possibility frontiers (PPFs) which provide a simple, yet powerful tool to illustrate the effects of making an economic choice. A PPF shows all the possible combinations of two goods, or two options available at one point in time.
Can the PPF shift explain with diagram?
Given the fact that resources are scarce, we have constraints, which is what the curve shows us. When the economy grows and all other things remain constant, we can produce more, so this will cause a shift in the production possibilities curve outward, or to the right.
How does this PPF illustrate the concept of scarcity?
The addition of the PPF curve thus illustrates scarcity by dividing production space into attainable and unattainable levels of production.
What is meant by "production possibility frontier"?
A production possibility frontier represents several production combinations where resources within the economy are fully utilized in the productio...
What causes a PPC curve to shift?
The PPC curve can shift due to the availability of resources, such as capital, labor, and technological resources. It can shift due to a change in...
Why is the graph of a PPF curved?
The PPF graph is curved because of the law of diminishing returns. At a certain point in production of a good, it is more marginally beneficial to...
What is the importance of the production possibilities frontier?
The production possibilities frontier illustrates combinations of production where resources are fully utilized. It illustrates the concept of scar...
What does a PPF graph show?
The PPF graph shows the production possibilities of an economy when resources are maximized in production. A point along the curve shows productive...
What Does a Production Possibilities Curve (PPC) Show?
The PPC shows us how efficiently a country is utilizing its resources to produce goods. If a country is producing on its PPC, then it is producing at full capacity and would not be able to produce more unless it increases its resources.
Why is the PPF Graph Curved?
The PPF graph is a curve instead of a straight line. This characteristic illustrates the law of diminishing returns which states that each additional factor of production has less marginal benefit than the one before it.
What Causes the Production Possibilities Curve to Shift Outward or Inward?
Changes in available resources are what cause the production possibilities curve to shift outward and inward. As the resources available within an economy change, the PPF curve will shift in or out depending on if resources become less or more available. Some of these resources are:
What does the magnitude of the slope of the PPF mean?
Therefore, the magnitude, or absolute value, of the slope of the PPF represents how many guns must be given up in order to produce one more pound of butter between any 2 points on the curve on average.
What happens to the production possibilities frontier?
If technology changes in an economy, the production possibilities frontier changes accordingly. In the example above, an advance in gun-making technology makes the economy better at producing guns. This means that, for any given level of butter production, the economy will be able to produce more guns than it did before. This is represented by the vertical arrows between the two curves. Thus, the production possibilities frontier shifts out along the vertical, or guns, axis.
What is a PPF curve?
The production possibilities frontier (PPF for short, also referred to as production possibilities curve) is a simple way to show these production tradeoffs graphically. Here is a guide to graphing a PPF and how to analyze it.
Why does the slope of the PPF increase?
Because of this, the magnitude of the slope of the PPF increases, meaning the slope gets steeper, as we move down and to the right along the curve.
What would happen if the economy was instead to experience an advance in butter-making technology?
If the economy were instead to experience an advance in butter-making technology, the production possibilities frontier would shift out along the horizontal axis, meaning that for any given level of gun production, the economy can produce more butter than it could before. Similarly, if technology were to decrease rather than advance, the production possibilities frontier would shift inward rather than outward.
What are the two goods that economists use to describe the economy?
Traditionally, economists use guns and butter as the 2 goods when describing an economy's production options, since guns represent a general category of capital goods and butter represents a general category ...
What would happen if an economy instead faced a constant opportunity cost of one producing one of the goods?
If an economy instead faces a constant opportunity cost of one producing one of the goods, the production possibilities frontier would be represented by a straight line. This makes intuitive sense as straight lines have a constant slope.
Why does the PPF curve shift outwards?
If there is an increase in land, labour or capital or an increase in the productivity of these factors, then the PPF curve can shift outwards enabling a better trade-off.
What is production possibility frontier?
A production possibility frontier shows how much an economy can produce given existing resources. A production possibility can show the different choices that an economy faces. For example, when an economy produces on the PPF curve, increasing the output of goods will have an opportunity cost of fewer services.
How does capital increase affect economic growth?
Increase in capital goods has an opportunity cost of fewer consumer goods, but in long-term can enable economic growth. Similarly, a decline in investment can enable more consumer goods in the short-term but can lead to lower rates of economic growth.
What is the choice an economy faces?
One choice an economy faces is between capital goods (investment) and consumer goods. If more resources are devoted to capital goods (e.g. building new factories) then in the short-term, consumption will go down.
How to show recession?
A recession can be shown by output falling below the production possibility frontier (from A to B).
How can the Production-Possibilities Frontier be Shifted?
If the total amount of production factors like labor or capital increases, then the economy is able to produce more goods at any point along the frontier.
How many units of trade off between carrots and potatoes?
Looking at the slope of the frontier in the graph above, we see that there is a 1-unit trade-off between producing carrots and potatoes. This means that for every additional carrot produced, Economy A will need to cut back the production of potatoes by 1 unit due to its scarce production inputs.
What would happen if the economy produced 1 carrot?
Conversely, producing 1 carrot would mean that the economy would need to forego the production of 0.5 potatoes. Such a situation would make carrots much more attractive to produce (assuming the profits generated in the sale of both carrots and potatoes remain constant).
What are changes in the slope of the PPF?
Changes in the slope of the PPF are mainly linked to the production costs of the goods in the economy. Taking Economy A as an example, suppose that the total labor and capital inputs required to manufacture goods are summarized by the variable k. The 1-to-1 trade-off would only hold if carrots and potatoes both had the same k value, say 100 in the current economic conditions.
What would happen if the cost of producing 1 potato increased to 200?
Suppose that the cost of producing 1 potato increases to k= 200, and the cost of producing 1 carrot remains constant. In such a scenario, the trade-off would change, as producing 1 potato would require the economy to forego the production of 2 carrots.
What is the Pigou effect?
Pigou Effect The Pigou Effect is a theory proposed by the famous anti-Keynesian economist, Arthur Pigou. It explains a relationship between consumption, employment, and economic output during times of deflation and inflation.
How many units can an economy produce if it devotes all resources to producing potatoes?
We also see that if Economy A devotes all resources to producing potatoes, it would be able to produce 500 units. However, if we suppose that the economy sees profitability in both goods and wants to produce both, we encounter the idea of trade-off.
What is the PPF diagram?
Any society’s choice problem is illustrated by using a diagram, called production possibilities curve (PPC) or production possibilities frontier (PPF). A PPF joins together the different combinations of goods and services which a country can produce using all available resources and the most efficient techniques of production. A PPF is shown in Fig 1.1. The graph is based on the data shown in Table 1.1.
Why is the PPF curved?
In short, the PPF is curved rather than a straight line because not all resources are equally efficient in the production of two goods.
Why is the PPF called a frontier?
The PPF is called a frontier or a boundary line because any point on the curve represents full employment of resources. Production cannot take place beyond the curve.
Why is the PPF concave?
It is because opportunity cost increases that the PPF is concave to the origin (bowed outward) rather than being a straight line. Thus in Fig 1.1 as the society moves from point C to D to E, the amount of food sacrificed rises for each additional unit of cloth produced. The opportunity cost of the 3rd million units of cloth is 3 million units of food. But the opportunity cost of 4th million units of cloth is 4 million units of food.
What is the point A in Fig 1.1?
At point A in Fig 1.1 the country is producing only food and no cloth. If the country has decided to produce some cloth, we might expect the opportunity cost of the first few units of cloth to be relatively small as those resources which are more efficient in the production of cloth move from food production into cloth production.
What is PPF in economics?
The PPF is the method of illustrating the economic problem of scarcity. The PPF shows the maximum amount of goods and services that can be produced by an economy at a given point of time with available resources and technology.
What is the difference between point A and point F?
Point A represents the maximum output of food if no cloth is produced, while point F shows the exactly opposite situation — the maximum production of cloth if no food is produced. At any point along the PPF, such as C, there is a trade-off between the two goods.
Step 1: Select the Data
The first step is to select the data with which you want to create the graph.
Summary
Select “Scatter with Smooth Lines and Markers” option or any other “Scatter” chart option.
