Opportunity cost and PPC

Question 1

Opportunity cost

Answer 1

Opportunity cost is the cost
of the next best opportunity
forgone when making a
decision.

Question 2

production possibility

curve (PPC)

Answer 2

The production possibility
curve (PPC) represents the
maximum combination of
goods and services which
can be produced in an
economy, i.e. the productive
capacity of the economy.