Production Possibility Curves

Question 1

What does a PPC curve show?

Answer 1

The maximum level of output possible from a set of inputer/resources.

Question 2

How does a ppc curve show choice?

Answer 2

Lines plotted on the curve.

Question 3

How is Opportunity Cost shown in a ppc curve?

Answer 3

The movement of one point to another along the curve.

Question 4

What happens when when a curve shifts for one product?

Answer 4

1. A change in available resources
   
   1. labour
   2. fop
   3. money
2. A change in technology
   
   1. better technologies