Understanding the Production Possibilities Curve

A model that shows alternative ways that an economy can use its scarce resources

Scarcity, trade-offs, opportunity costs, and efficiency

Only two goods can be produced, full employment of resources, fixed resources, fixed technology

<p>A specific combination of goods that can be produced given full employment of resources</p> Signup and view all the answers

<p>Resource allocation</p> Signup and view all the answers

<p>They are fixed</p> Signup and view all the answers

<p>No, it is a simplified model</p> Signup and view all the answers