Microecon

Quantity of one good that society must sacrifice or give up in order to produce another unit of other good

•Shows the alternative combinations of goods that can be produced if the economy fully uses all available resources

•Production possibilities of an economy are limited because resources used to produce goods and services are limited

Combinations of the two goods located inside the curve

Combination of the two goods located outside the curve

Implies that the quantity of output for both goods can be increased at the same time