In this PPC, clothes is on the horizontal axis.

Points that lie on the PPC are combinations of output that are productively efficient.

Spending on capital goods is considered an investment.

In this PPC, there is a rightward shift.

In this PPC, capital goods is on the vertical axis.

In this PPC, production of capital goods is more at point 5.

Average product multiplied by labour equals total product.

In this PPC, consumer goods is on the horizontal axis.

The PPF relates to the concepts of scarcity, choice, and tradeoffs.

In this PPC, corn is on the horizontal axis.

In this PPC, point 1 is in the inefficiency region.

In this PPC, food is on the vertical axis.

In this PPC, production is not attainable at point 1.

An efficient machine operates at a higher cost compared to an inefficient machine.

In this PPC, productive resources are not efficiently utilized at point 2

In this PPC, productive capacity increased.

In this PPC, production is unattainable at point 2.

Only two goods are compared in a PPC.

If ten workers produce five bags each then their total product is 300 bags in three days.

In this PPC, production is attainable at point 3.

The shape of the PPC is typically straight, rather than curved outward.

In this PPC, there is an upward shift in PPC at point 2.

In this PPC, there is a negative shift.

In this PPC, production is not attainable at point 4.

While every society must choose how much of each good it should produce, it does not need to produce every single good it consumes.

In this PPC, production of consumer goods is more at point 1.

If total product of 10 workers is 500, their average product is 50.

In this PPC, production of capital goods is more at point 3.

In this PPC, production of consumer goods is less at point 5.

Individuals and societies cannot have everything they want so they must make choices.

In this PPC, production of consumer and capital goods is achievable at point 5.

In this PPC, production of capital goods is at minimum at point 6.

In this PPC, productive capacity increased.

A PPC shows all the different combinations of the output of two goods that can be produced using available resources.

In this PPC, there is a backward shift.

When Marginal Product is negative, Total Product falls.

In the long run, an enterprise can make any changes to all factors to attain the desired production.

In this PPC, to get to point 1, more resources are needed.

Every choice made has an opportunity cost because in most cases there is an alternative.

Change in output divided by change in labour equals marginal product.

In this PPC, production of robots and corn is impossible anywhere beyond PPC 1.

Comparative advantage is when a country can produce a good at a higher cost in terms of other goods.

In this PPC, production of consumer goods is at its lowest at point 6.

Consumer goods are products and services that satisfy the needs of buyers.

Average product is output per unit of inputs of variable factors.

In this PPC, there is a negative shift.

Total product of labour divided by the number of workers is average product.

When Marginal Product is zero, Total Product reaches its maximum.

If change in output and labour are 20 and 4 resepctively, Marginal Product is 5.