Econ Lesson 2 - PPC

The Production Possibility Curve (PPC), also called the Production Possibility Frontier (PPF), shows the maximum combinations of two goods or services an economy can produce with its available resources and technology. Points on the curve are efficient, meaning resources are fully used. Points inside the curve show inefficiency (underutilization of resources), while points outside are unattainable with current resources. The PPC illustrates opportunity cost—as more of one good is produced, increasing amounts of the other must be sacrificed. If the curve shifts outward, it reflects economic growth through more resources, better technology, or improved productivity.