Production possibility curve (PPC)
Definition
The production possibility curve (PPC) is a graphical representation that shows the maximum combination of goods and services that an economy can produce given its available resources and technology.
Related terms
Opportunity cost: The value of the next best alternative that must be given up when making a choice.
Efficiency: The state in which resources are used optimally, producing the maximum possible output.
Trade-off: A situation where choosing one option means sacrificing another option.
"Production possibility curve (PPC)" appears in:
Study guides (1)
AP Macroeconomics - 3.4 Long-Run Aggregate Supply (LRAS)
Additional resources (1)
AP Macroeconomics - Unit 1 Overview: Basic Economic concepts
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AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.