Chapters 1-2 Production Possibilities Graphs
Above is an example of a PPC A-E being attainable and efficient, F is inside the curve so its attainable but inefficient with underused resources, G is outside the curve which makes it unattainable
Efficiency- using resources in such a way as to max the production of goods and services
underutilization-using few resources than the economy is capable of using
3 types of movements of PPC
- Inside- this means the resources are underemployed
- along the PPC means everything is working great !
- Shifts of PPC- when resources or technology changes
What causes a PPC to shift
- Technological Change
- Change in resources
- Change in labor force
- economic growth
- Natural Disasters/ wars
- more education
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