Production Possibilities Curve - AP Microeconomics

Due to increasing opportunity costs. Reflects specialized resources becoming less adaptable.

Economic growth. Rightward shifts represent expanded economic capacity.

Limited resources force trade-offs. Finite resources require choosing between alternatives.

Trade-offs and opportunity costs. Every choice involves sacrificing alternatives.

Outward shift of the PPC. More workers increase total production capacity.

Shift the PPC outward. Education improves human capital and productivity.

Causes production inside the PPC. Unemployed resources reduce actual production below capacity.

Currently unattainable production level. Exceeds current resource and technology constraints.

Increased production possibilities. New technology expands what can be produced.

A bowed-outward curve. Resources become less efficient when reallocated.

A decrease in available resources. Indicates reduced productive capacity or resources.

Efficient allocation of resources. Resources are used at maximum productive capacity.

Feasible production points. All combinations within production capacity.

The rate of substitution between two goods. Shows how much of one good must be sacrificed.

Resources are fixed and fully employed. Assumes maximum resource utilization without waste.

A change in production choices. Movement occurs without changing resource availability.

Constant opportunity costs. Resources substitute equally between production alternatives.

A straight line. Resources are perfectly substitutable between goods.

An increase in resources or technology. Expands the economy's production capacity.

Efficient use of resources. All resources are fully utilized with no waste.

Inefficient use of resources. Resources are underutilized or unemployed.

An increase in production efficiency. Resources move from idle to productive use.

More of one good requires larger sacrifices of another. Specialized resources become less efficient when reallocated.

It increases as more of one good is produced. Concave shape reflects increasing marginal opportunity costs.

Producing on the curve with no resource waste. Maximum output achieved with available resources.

Opportunity cost of one good in terms of another. Slope measures trade-off ratio between goods.

A decrease in resources or technology. Reduces the economy's production capacity.

It can shift the PPC outward over time. Specialization improves productivity through focused expertise.

It illustrates potential output combinations. Demonstrates maximum feasible production combinations.