Production possibility curve diagrams · ⁨生产可能性曲线图⁩

More guns or more butter?

• A country can use its resources to make weapons or consumer goods — but with limited resources, more of one means less of the other.
• The production possibility curve 生产可能性曲线 (PPC) draws this trade-off 取舍.

Reading the PPC

• The PPC shows the maximum combinations of two goods an economy can make using all its resources fully.

On the curve = efficient 有效率的; inside = resources wasted; beyond = impossible with current resources.

Opportunity cost on the curve

• Moving along the PPC to make more of one good means giving up some of the other — that's the opportunity cost.
• A point inside the curve means resources are unemployed 闲置的 or wasted.

Shifts: economic growth 经济增长

• The whole curve shifts outward with economic growth — more or better resources, or new technology 技术.
• It shifts inward if resources are lost (war, disaster).

Economic growth shifts the whole PPC outward; losing resources shifts it inward

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