Production Possibility Curve C4 Flashcards
1
Q
What is the definition of PPC?
A
A diagram showing the maximum possible output for two goods or services with a given amount of resources.
2
Q
What is the effect of decrease in unemployment on PPC?
A
Unemployed resources means not all the resources are being used up, a decrease in unemployment will lead to more resources being used efficiently, increasing the output.
