Production possibilities curve

An introduction
Abstractions and Assumptions of a
PPC
Compare 2 variables; goods or services
Trade-offs or opportunity cost involved
All available resources are fully employed
All available technology is fully employed
Productive efficiency: Resources are
employed in the least costly way
What type of curve illustrates the
label below?
Increasing
opportunity
cost
per unit of
good B
What type of curve illustrates the
label below?
Increasing
opportunity
cost
per unit of
good B
What type of curve illustrates the
label below?
Zero
opportunity
cost
per unit of
good B
What type of curve illustrates the
label below?
Zero improbable

opportunity
cost
per unit of
good B
What type of curve illustrates the
label below?
Constant
opportunity
cost
per unit of
good B
What type of curve illustrates the
label below?
Constant
opportunity
cost
per unit of
good B
What type of curve illustrates the
label below?
Decreasing
opportunity
cost
per unit of
good B
What type of curve illustrates the
label below?
Impossible;
Decreasing not
opportunity supported
by
cost economic
theory
per unit of
good B
 What trade-offs are
involved?
Why is the PPC
concave?
What does point (E),
inside the PPC
illustrate?
What is the
significance of point
(F), outside the PPC?
Under what conditions
can point F be
reached?
Moving from point B
to point A, could
eventually expand
the frontier from
G,G to H,H