Thursday, February 19, 2009

**Opportunity Cost & Production Possibilities Curve**

How does opportunity cost relate to production possibilities?

Draw a production possibilities curve:

What does a pp curve show?

Indicate a point on the pp curve where resources are underutilized:

Indicate a point on the pp curve for future growth:

Describe how education or lack of education might impact a pp curve:

**Use chapters 1 & 2 in the text for this.