4. Production possibility curve diagrams

Production possibility curve (PPC)

Curve showing maximum possible combinations of two goods that can be produced with given resources.

PPC diagram

Graph showing maximum combinations of goods and services that can be produced in an economy.

Optimum population

Population size that maximises output per head.

Population

Total number of inhabitants of a country.

Population distribution

Composition and structure of a country’s population.

Population growth

Rate of change in the size of a country’s population.

Population pyramids

Diagrams showing age and gender distribution of a country’s population.

Overspecialisation

Too much concentration on a limited range of goods and services increasing risk.