production possibility curve Flashcards
1
Q
what is the production possibility curve?
A
the production possibility curve is a curve that shows the maximum combination of two goods and services that can be produced in an economy
2
Q
why is the ppc curved?
A
there is an increasing opportunity cost
3
Q
what does a country have to do to be on its ppc?
A
it has to make full use of its resources and there has to be no unemployment of the factors of production
