Opportunity Cost and Comparative Advantage

Model

Production Possibility Curve (Frontier)

Build PPC steps

Efficient points

Inefficient points

Attainable Points

Unattainable Points

Absolute Advantage

Opportunity Cost

Calculate opportunity cost from graph

Comparative Advantage

Principle of Comparative Advantage

Steps to draw economy-wide PPC

Increasing Opportunity Cost

Other name of Low Hanging Fruit Principle

Factors to shift out PPC

Consumption Possibility Curve

CPC on a closed economy is

The CPC in an open economy is usually

Why an economic wide PPC is gaped like a bow