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production possibilities frontier
features of the model:
shows the tradeoff between the production of 2 different items and easily demonstrates the concepts of scarcity, choice, opportunity cost, and efficiency.
Shows the maximum combination of 2 types of outputs that can occur when/if all resources are being used efficiently and technology is fixed.
Inverse relationship
- downward facing curve
why? Because the factors of production are scarce
aka if you make more of one, you have to make less of the other
Productive efficiency
The economy is producing the maximum output for a given level of technology and resources
- all points on the curve of the PPF are productively efficient
law of increasing opportunity cost
increasing quantities of one good can only be accomplished by sacrificing ever-increasing quantities of another good.
Growth in PPF - how?
There is an increase in the quality and/or the quantity of the factors of production
Destruction of FOP leads to?
A negative shift in the PPF
Straight line PPF
constant opportunity cost
- factors of production for both are largely the same
Note 
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