No Bull Economics Lessons

Macroeconomics & Microeconomics Concepts You Must Know

Production Possibilities Curve

Back>>>Every graph you need to know for the AP Macroeconomics Exam









Summary: The Production Possibilities Curves above are concave to the origin which indicates the Law of Increasing Costs. The only way to produce beyond the curve is if economic growth occurs in the future or if the economy specializes and trades with another economy (Comparative Advantage). To simplify things, the PPC will be straight (constant cost) on the test to determine if trade should occur between two countries.

Back>>>Every graph you need to know for the AP Macroeconomics Exam

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