*only two goods can be produced
- PPG Graph- shows alternate ways to use resources
- PPC Curve
- PPF Frontier- illustrates opportunity cost
Point A- attainable to get to the curve, War, Famine, Unemployment
Point B,D,C attainable & efficient
Point X unattainable- things to change it: Technology and Economic growth
Productive efficiency- any point of the curve
Law of Increasing Opportunity Cost - when resources are shifted from making one good or service to another the cost of proceeding the second item increases
*this occurs because not all resources are equally suited from the production of all goods.
To move up from unattainable:
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