<1.5 PPC>

--1.5.2 CONSTANT & INCREASING OPPORTUNITY COST--

"IGCSE ECONOMICS REVISITED"

--1.5.1 NATURE/MEANING OF THE PPC--

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"The 'PRODUCTION POSSIBILITY CURVE (PPC)' also known as the PRODUCTION POSSIBILITY FRONTIER (PPF) is an economic model used to illustrate the economic concepts of FACTORS OF PRODUCTION, SCARCITY, CHOICE, and OPPORTUNITY COST."

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"The model simplifies a complex economy down to just TWO DISTINCT CATEGORIES OF OUTPUT (e.g., "Capital Goods" vs. "Consumer Goods," or "Fish" vs. "Coconuts") in order to clearly visualize a 'trade-off' on a two-dimensional graph."

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"Let's start with imagining an economy that can produce only two types of good, fish and coconuts.

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"Given LIMITED RESOURCES, maximum output is constrained, and CHOICES must be made about how to allocate them between fish and coconuts. This tradeoff inevitably incurs an OPPORTUNITY COST."

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--1.5.2 CONSTANT & INCREASING OPPORTUNITY COST--

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"This trade-off depends

"If opportunity costs are constant, then it's the same as saying the rise over run is constant, aka the 'gradient,' which, as we know, creates a 'straight line'

but how realistic is this?"

<1.5 PPC>

--1.5.1 NATURE/MEANING OF THE PPC--

--1.5.2 CONSTANT & INCREASING OPPORTUNITY COST--

--1.5.3 SHIFTS IN THE PPC: CAUSES--

--1.5.4 POSITIONS WITHIN THE PPC--