Nearby & related entries: 1  valley of death. 2  valley of ten thousand smokes. 3  valley of the kings. 4  valley of the shadow of death. 5  valley pocket gopher. 6  valley white oak. 7  valleyfield. 8  valleys. 9  valleyspeak. 10  valleytronics.
Economics Explained: Production-Possibility Frontier. Whenever a company, factory, or even country decides to produce something, there is only so much they can make. A finite amount of capital (factories, production equipment, etc) and laborers exist, and they limit the possible amount of production. The production-possibility frontier, or PPF, is a graphical way of showing trade-offs in production choices between 2 items. If the United States decided tomorrow to produce as many loaves of bread as possible, there would be a limit to how many loaves were made.
Similar calculations can be made between the other labeled points: 1  In going from the second to the third point, the economy must give up production of 40 guns if it wants to produce another 150 pounds of butter, and the average slope of the PPF between these points is (150-190)/(250-100) = -40/150, or -4/15.