Unit 1: PPG'S

Points On A PPG 

1.  Point A (Inside of the Curve)

• Unattainable 
• Underemployed
• War
• Famine
• Recession/Depression 

       2. Point B (On the Curve)

• Efficient and Attainable

       3. Point C (Outside the curve)

• Unattainable
• Economic Growth 
• Technology  

       4. Opportunity Cost 

• The next best alternative that you must give up in order to get something (Trade-off)

       5. Law of increasing opportunity cost

• As you produce more of one good the opportunity cost (forgone production of another good) will increase.

       6. Productive Efficiency 

• Products being produced in the leaste costly way. (This is any point on the PPG)

       7. Allocative Efficiency

• Products being produced are the ones most desired by society.