1. PPC runs between extremes of producing ________________________________
2. Data is plotted on a graph; lines joining points is PPC, shows the maximum number of one item relative to ______________
3. PPC shows _______________ of each choice more of one product means less of the other
4. ___ - represents inefficient use of resources
5. ____ - represents unattainable combinations
6. Efficiency –

7. Underutilization –


8. Law of increasing opportunity cost – Each _________________ increment of one good requires economy to _____________ successively larger increments of the other good.
Changing Production Possibilities
9. Increased production shown on PPC as shift of curve ________________
10. Increase in total output called __________________
11. Why are there shifts in PPC graph?

An expansion in the economy’s production possibilities or ability to produce.
12. This is the goal of the government to have _________________________, Measured by the ________ (Gross Domestic Product)
Guns and Butter:
Much like the PPC graph, but it focuses on what the government should spend on. Guns replaces
capital goods, and butter replaces consumer goods.
13. Technology is one of the factors that can ___________ a nation’s efficiency.
14. Highly skilled/trained workers can use this technology to ____________ efficiency too.
15. Explain how each term is illustrated by the production possibilities curve:
Underutilization –