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1.4 Key terms

Unit 1.4 - Key terms: Production possibility curveA movement along an economy"s PPC is caused by a reallocation of resources from the output of one product for another. This movement signifies an opportunity cost for the economy.A production possibility curve (PPC) shows the potential or maximum combination of any two products that can be produced in an economy, at a particular point in time if all resources are used...

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