Fill in the Blanks Module 3Online version The Production Possibilities Curve - Fill-in-the-Blank by Zachary Foust 1 feasible outside get maximum two inside scarce Since resources are , every economy faces trade - offs . You make a trade - off when you give up something in order to something else . The production possibilities curve illustrates a simplified economy that produces only types of goods . The production possibilities curve shows the output of an individual , business , or country . There is a crucial difference between points or on the production possiblities curve and points outside the production possiblities curve . If a production point lies inside or on the curve , it is . A production point that lies the curve isn't feasible . 2 unemployment specific Lower efficient allocative worse employed better unemployed efficiency better inside worse missed Greater productive The production possibilties curve is useful for illustrating the general economic concept of . An economy is efficient if there are no opportunities . An economy is efficient if there is no way to make some people off without making other people off because all resources are being used . An economy is inefficient if there is a way to make some people off without making anyone off because some resources are not being used . An economy achieves efficiency if it produces at a point on its production possibilities curve . An economy is inefficient if it produces at a point its production possibilties curve . When people are involuntarily , the economy is inefficient because it could produce more ouptut if those people were . Changes in move the economy closer to , or further away from , the production possibilties curve . unemployment is represented by points farther below the production possibilties curve . unemployment is represented by points closer to the production possibilities curve . Productive efficiency is only part of what's required for the economy as a whole to be . If an economy allocates its resources so that consumers are as well off as possibile , it achieves efficiency . Allocative efficiency is represented by a point on the production possibilities curve that shows the mix of goods that people want to consume . 3 up constant low up bowed used given cost straight out increasing opportunity line The production possibilties curve is also useful as a reminder that the true cost of any good is not only its price , but also everything else in addition to money that must be in order to get that good . The amount of a good that is given up when moving along the production possibilities curve is the . Whenever the opportunity cost of an additional unit of a good doesn't change , the production possibilties curve is a . A straight - line production possibilities curve shows opportunity cost . When opportunity costs are increasing rather than constant , the production possibilities curve is - rather than a straight - line . In reality , opportunity costs are typically . When only a small amount of a good is produced , the opportunity cost of producing that good is relatively because the economy needs to use only those resources that are especially well suited for its production . As more of a good is produced , its opportunity cost typically rises because well - suited inputs are and less adaptable inputs must be used instead . 4 growth beyond smaller economic shift technology can capital Natural resources pivot loses disasters way two The production possibilties curve helps us understand what it means to talk about . Economic growth means that the economy produce more of everything . Economic growth is shown as an outward of the production possibilities curve . Unless the production possibilities curve shifts outward , the points the PPC are unattainable . There are general sources of economic growth . One source of economic growth is an increase in the quantity of used to produce goods and services . Resources include land , labor , , and entrepreneurship . The other source of economic growth is progress in . Technology refers to the in which a good or service is produced . Technology specific to the production of one good causes the production possibilities curve to outward . If an economy's production possibilities curve shifts inward , the economy has become . The production possibilities curve can shift inward if the economy resources or technology . and destructive wars can lead to a loss of resources .
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