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Scarcity, choice and the PPF

Scarcity, choice and the PPF

Production possibility frontier with consumer goods on the horizontal axis and capital goods on the vertical axis, showing point A on the frontier, point B inside, point C outside, and an arrow for opportunity cost

Economics begins with scarcity: wants are unlimited, but land, labour, capital and enterprise are limited. Because resources are scarce, societies must choose what to produce, how to produce and for whom to produce.

1.1.5 Production possibility diagrams Lesson

  1. A Level
  2. /Economics
  3. /1.1.5 Production possibility diagrams