The Production Possibility Curve Model - Section 1, Module 3

The PPC allows economists to think about the trade offs in economics

• helps us understand 3 important aspects: efficiency, opportunity costs, and economic growth

trade offs - giving up something for something else bc resources are scarce

PPC - shows trade offs in an economy producing 2 goods

• shows maximum # of a good that can be produced at a given # of the second good

  • point inside/on the curve is possible

  • point outside the curve is impossible