Production possibility curve
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1 Introductory concepts 2  Market mechanism  3 Elasticities  4 Market structures 5  Market failures  6  Macro economic activity/eco growth  7 Inflation 8  Employment & unemployment  9  External Stability  10  Income distribution 11.Factors affecting economy  12  Fiscal/Budgetary policy  13  Monetary Policy   14 Aggregate Supply Policies  15 The Policy Mix

This is also referred to as the Production Possibility Frontier (PPF).  It is an abstract tool used by economists to highlight concepts such as:

It relies on a number of simplified assumptions, the key ones being:

Points to note about the PPC are as follows:

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