In economics the production possibilities curve (PPC) is a graphical representation of the different combinations of output that an economy can produce given the available resources and technology. It illustrates the trade-offs between two or more goods that an economy can produce. For example if an economy is producing at a point on the PPC it cannot produce more of one good without producing less of another. The PPC is often used to illustrate the concepts of opportunity cost and scarcity.
production possibilities curve definition economics
A production possibilities curve is a graphical representation of the different combinations of goods and services that an economy can produce given the available resources and technology. The production possibilities curve is used to illustrate the concepts of scarcity opportunity cost and trade-offs. The opportunity cost is the cost of one good or service in terms of another. The trade-off is the decision that has to be made when resources are limited and choices have to be made about what to produce.
production possibilities curve definition economics quizlet
A production possibilities curve is a graphical representation of the different combinations of two goods or services that can be produced within an economy given the available resources and technology. The production possibilities curve illustrates the concept of opportunity cost which is the trade-off between producing one good or service over another. The further out on the curve you go the more of one good or service you have to give up in order to produce more of the other good or service.
production possibility curve econ definition
A production possibilities curve (PPC) is an economic model that shows the different combinations of output that an economy can produce given the available resources and technology. It is a graphical representation of the trade-offs that an economy faces between producing two different goods. The PPC shows the maximum amount of one good that can be produced for every possible level of production of the other good. For example if an economy is capable of producing 100 units of good A and 200 units of good B then the PPC would show that the maximum amount of good A that could be produced is 200 units.
production possibility curve in economics means
A production possibility curve (PPC) is a graphical representation of the different combinations of two goods or services that can be produced if all resources are fully and efficiently employed. The PPC illustrates the trade-offs that an economy faces when allocating its resources between the production of two goods. The PPC is also sometimes referred to as the production possibilities frontier (PPF).
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