Production Possibilities

All of the following show the alternative ways to use an economy's resources.

1. Production Possibilities Curve (PPC)
2. Production Possibilities Frontier (PPF)
3. Production Possibilities Graph (PPG)

Four Assumptions of a PPG

1. Two goods
2. Fixed resources
• Examples- Land, Labor, Capital, and Entrepeneurship
3. Fixed technology
4. Full employment of resources