PPC Flashcards
1
Q
ppc
A
production possibility curves
2
Q
what is a PPC
A
combinations of the maximum amount of goods/services that can be produced using all FOPs
3
Q
what do ppcs tell us
A
the opportunity cost between different points on the curve. if the society is on the firm they are all full capacity and productive efficiency. inside ppc is inefficent. outside ppc is unattainable
4
Q
short run economic growth on the ppc
A
point of operation moves closer to the ppc
5
Q
if ppc shifts in
A
long run economic decline. decrease in quantity or quality of FOPs
6
Q
if PPC shifts out
A
long run economic growth
7
Q
A
