ECON102: Principles of Macroeconomics (2021.A.01)

Watch these two videos to learn how a production possibilities curve is constructed. Pay close attention to the way changes in resources affect the PPC curve. As you will see, some combinations of products may be unattainable, given the limited existing resources, whereas other combinations of products may be inefficient as they leave some unused resources. The PPC curve helps us find levels of production that utilize all of the available resources in the economy.