PPG Point Movement and Location

• Point location meanings:
Image result for production possibility graph point on the inside

-Point on the inside: A : Underemployment, unemployment, under-utilization; Attainable but inefficient 

-Point on the curve/frontier: B : Effective allocation of resources.

-Point outside of the curve: C: Technology/Economic growth; Unattainable 

 • Movement of the ppg:

 1.) Inside of the curve: resources or labor are not being used to maximum efficiency
2.) Along the curve: resources and labor are being used to maximum efficiency
3.) Shifts of the curve: resources or labor are being used at a different rate

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