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production possibilities curve
a graph that shows alternative ways to use an economy's resources
underultilization
using fewer resources than an economy is capable of using, not what we want! Point X.
Impossible to Reach with Existing Resources
a point outside the PPC curve, such as point E.
Economic Growth
The situation has changed so we can produce more or both products. Technology has improved or more workers added. Curve Shifts Right.
Curve Moves Left
We have lost workers, factories are destroyed, or machines break down. We are producing less of both products.
Trade-offs
The list of options when making an economic decision
Production can only occur
when all 4 factors of production are employed.
Land
A.K.A - Gifts of nature, natural resources, parts
Labor
workers with all of their skills, abilities and talents
Capital
Tools and machinery
Financial Capital
money borrowed or invested in new business
Specialization
employees doing the task they are best at
Entrepreneurship
risking financial capital in order to make a profit
Note 
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