Production Possibilities Curve (PPC)
Daniel Gray
10 min read
Study Guide Overview
This AP Microeconomics study guide covers the Production Possibilities Curve (PPC), including foundational concepts of scarcity, opportunity cost, and trade-offs. It explains production possibilities, efficiency, and how the PPC visually represents these concepts. The guide details how to interpret the PPC graph, focusing on increasing and constant opportunity costs. It also covers economic growth and factors that shift the PPC, such as changes in resources, technology, and trade. Finally, it provides practice questions and exam tips.
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Question 1 of 12
What does opportunity cost represent? 🤔
The monetary price of a good
The cost of all inputs in production
The value of the next best alternative given up
The total cost of producing a good