Productive efficiency and the efficiency of a production possibilities frontier (PPF) IntroductionThe production possibilities frontier is also known as (PPF) in the world economic. It is simply a graph or diagram that clearly shows the rate of production of two goods and/or services that an economy produces efficiently or inefficiently over a given period of time. It accurately shows production levels from maximum to minimum quantities produced in a uniformly drawn curve. This is usually compared to another curve that shows shifts above or below the original one. This second curve clearly shows the efficiency or inefficiency of production depending on given factors that favor or against the production levels of a given economy (Thompson 1985). Identifiable major points are drawn on the graph using two major factors while holding the others constant, then a curve is drawn using several points on the graph (major points). Minor points that generally lie within this curve are generally considered accessible but not effective (Christensen, Jorgenson, and Lau 1973). Statement Although most curves are drawn concave, they bulge toward the exterior from the starting point; PPFs can sometimes be represented as straight lines or in a convex shape, bulging inward from the origin of the graph or diagram. It depends on the amount of factors taken into account. PPFs, also known as production possibility curve or product transformation curve, are used to represent several aspects such as resource scarcity, real costs of forgone alternatives (opportunity costs), cost savings. scale and even efficiency of a given production in an economy. Basically, an outward shift in the PPF curve is ...... middle of paper ...... will ensure the overall growth rate of a given economy. It also shows the different opinions of an individual or organization in a two-voucher model. By definition, all curves are productively efficient, but depending on the nature of the market some will be more productive than others. The given equilibrium of an economy given the PPF will be the combination of given products that is most profitable. It basically shows the production possibilities of that economy over a given period of time. Factors such as market failure can sometimes arise, which may be due to imperfect competition or other externalities not taken into account. This can lead to poor grouping of produced goods, therefore poor mixing and poor allocation of necessary resources. These may be different from what the consumer actually had given what is consumable on the given production possibilities frontier (PPF).).