Production Possibilities Frontier → illustrates the combination of outputs a society can produce if all of its resources are being used efficiently
[](<https://lh7-rt.googleusercontent.com/docsz/AD_4nXfEfzVqjI4rpGROQJzO5sQTz72hsoAEcYUVQIFJYfeMqWjurSdicp-SchywFICnqJC6MIEMjmbtRlzzXUGWd_RZmHBOQtbwdYyg-4c8HcozONk1dJcVgnY1zaq4207_L3hqt1qFoyzeh2u7Gd3s4PIK5Zg?key=JVwyDDOawlAPEgMDwsWtYA>)
- Points A, B, and D **→ *efficient* production**
- Point E **→ *inefficient* production**
- Point F **→ *impossible* to produce
A straight-line PPF implies a constant opportunity cost
[](<https://lh7-rt.googleusercontent.com/docsz/AD_4nXcoybe0tHhUCIy4c6S682CQftPf2gAlpf6U8_udDr25ozMInLfomIdk6lfbu3AJ22WWIvCmxoilQzAOECg3o8WTLI2GGi2h2FN6j8UcWv0yAALqIG3VlO8283dxTQobJtwESICNip3aSzuEc5Os2GgakaA?key=JVwyDDOawlAPEgMDwsWtYA>)
The law of increasing opportunity cost → the opportunity cost of producing a good rises as society needs more of it
Economic growth → enables a society to produce more output