Instructional Video

Khan Academy: Production Possibilities Curve

Curated by ACT

The production possibilities curve (PPC) is a graph that shows all of the different combinations of output that can be produced given current resources and technology. Sometimes called the production possibilities frontier (PPF), the PPC illustrates scarcity and tradeoffs. In this video [10:58], we model tradeoffs and scarcity using the example of a hunter-gatherer who can split their time between two activities.

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