Production Possibilities
Curve- graph which
shows alternative
combinations of two
goods produced in an
economy
Production Possibilities Curves
• Draw a correctly labeled PPC
• Add a point labeled “A” which shows
inefficient production
• Add a point labeled “B” which shows
production which is impossible given today’s
technology
• Add a point labeled “C” which shows all
resources being used
Guns
B
C
A
Butter