PPC Lecture + Reading Recap

PPC provides us the _____________ level of output of two goods which can be produced in an economy with limited resources.

PPC is a straight line if the resources which an economy uses are ____________

When drawing a PPC it is assumed that the quantity and quality of resources are __________________

It is assumed when making a PPC that only _____ goods are produced in an economy.

When making the PPC it is assumed that all resources in an economy are _________ employed.

If PPC is a straight line, it means that the opportunity cost of allocating resources from one good to another is ____________.

If the curve of the PPC is an outward bowed curve it means, that the opportunity cost of allocating resources from one good to another is ___________

If an economy is moving towards is PPC but is not on it, it means that the unemployment level in the economy is ___________.

Reducing the school leaving age is most likely to shift the PPC __________ of an economy.

If the net investment is positive, i ma most likely shift the PPC __________.