1. PRODUCTION POSSIBILITY CURVE (PPC) OR
PRODUCTION POSSIBILITY FRONTIER (PPF)
GOOD Y A B
GOOD X

2. GOOD Y 2
1 U
GOOD X
1] When the economy is producing inside the curve, it is not using it’s RESOURCES efficiently. There is under - utilisation of resources.
2] This graph shows growth as a movement from a point inside the PPC curve 1 (U), to a point on the curve (2)
3] This move towards the PPC shows an increasing efficiency

3. GOOD Y
GOOD X 1 2
1] This graph shows that there has been an improvement in the RESOURCES OR TECHNOLOGY that increase the capacity to produce more of GOOD X.
2] The capacity to produce GOOD Y remains unchanged.
3] There is no OPPORTUNITY COST.

4. GOOD Y
GOOD X 1 2
1] This graph shows that there has been an improvement in the RESOURCES OR TECHNOLOGY that increases the capacity to produce more of GOOD Y.
2] The capacity to produce GOOD X remains unchanged.
3] There is no OPPORTUNITY COST.

5. GOOD Y
GOOD X 2 1
1) This graph shows that there has been an improvement in both RESOURCES and /or TECHNOLOGY.
2) The capacity to produce both GOOD Y & GOOD X has improved at the same time.
3) When this happens there is no OPPORTUNITY COST.