What I have learned from the PPC/F

September 1, 2009 § Leave a comment

THE PPC/F, or also known as the production possibility curve, indicates the maximum combination of any two goods which an economy could produce if all its resources were either fully employed or organized as efficiently as possible. Here are the 5 things that I have learned from this concept:

  • Resources are scarce
  • Choices must be made
  • Trade-offs between alternative
  • Opportunity-Cost
  • Generally increasing opportunity cost
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