UNIT
1 Microeconomics
VISUAL 1.2
Production Possibilities Curve
A
12
B
ARMY TRUCKS
10
E
8
C
6
4
F
2
D
0
2
1
3
CARS
(A) What trade-offs are involved?
(B) Why is the PPC concave, or bowed out, from the origin?
(C) What does a point inside the PPC illustrate?
(D) What is an historical example of a point inside the PPC?
(E) What is the significance of a point outside the PPC?
(F) Under what conditions can a point outside the PPC be
reached?
Transparency developed by Faye Ison, Horace Mann High School, Gary, Ind., and Diana Spinnati, Mansfield City Schools,
Mansfield, Ohio.
Advanced Placement Economics Teacher Resource Manual © National Council on Economic Education, New York, N.Y.
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