According to the United Nations Conference on Trade and Development (UNCTAD), no agreed-upon definition of maximum output exists.
PPF expresses all the possibilities of a combination of these goods that can be maximally produced by a certain economy due to its scarce resources and creates a downward-sloping line.
An economy employing all the economically active people and all the resources efficiently produces on its PPF line, therefore has the biggest GDP as possible.
Investment in human or financial capital, providing better education, innovations or raising entrepreneurs – all of these have to be implemented especially in these countries.
Although, because of its specific starting position, there are several additional recommendations to succeed in the productive capacity heightening process: This economics-related article is a stub.