Production Possibility Curve Flashcards
1
Q
Describe the curve
A
-It shows the amount of two goods a country can produce with current resources and technology and resources Over given period of time.
- It helps to allocate resources (can be seen in PPC)
- Three points on the curve indicates that it is productive efficient.
- Allocative efficient occurs when welfare is maximized.
- PPC demonstrates the concept of oppurtinity cost.
