what is ppc in economics

In economics, PPC stands for Production Possibilities Curve, which is a model used to show the tradeoffs associated with allocating resources between the production of two goods. The PPC can be used to illustrate the concepts of scarcity, opportunity cost, efficiency, inefficiency, economic growth, and contractions. The PPC is drawn to illustrate all possible combinations of two goods that can be produced within the limitation of scarce resources. The PPC illustrates tradeoffs and opportunity costs when producing two goods, and it can be used to illustrate scarcity, efficiency, opportunity costs, and gains from trade. The PPC can be constant or concave, and it can be used to model a countrys economy.