Opportunity Cost and the Production Possibilities Curve (PPC)

This AP Macroeconomics study guide covers the Production Possibilities Curve (PPC), a fundamental concept illustrating scarcity and trade-offs. It explains key assumptions, core economic concepts (efficiency, scarcity, opportunity cost, economic growth, contraction), calculating opportunity cost, and PPC shifters (resources, technology, trade). The guide also differentiates between constant and increasing opportunity costs related to the PPC's shape.