This blog has been created to provide an area for economics students to read about how economics impacts daily life. It is especially useful for students to understand the application of macroeconomics as communicated through the media and governmental websites.

This online resource has been set up for educational purposes.All rights are reserved by the various websites.

For further clarification, please email colin@mrmc.com.sg


Brief description: The production possibility frontier shows the combinations of any two goods that the economy can produce. Economic growth will shift the PPF outwards.

Detailed description: Economic growth increases the potential level of output of the economy. This shifts the PPF to the right. The growth may have come from an increase in efficiency or perhaps an increase in the factors of production available. Here the PPF is drawn curved on the assumption of diminishing returns in consumption.