Production Possibilities Graph 
You must be wondering what a Production Possibilities Graph (PPG) is used for. A PPG shows alternative ways to use resources.
PPC= Production Possibilities Curve
PPF= Production Possibilities Frontier
Opportunity Cost= The next best alternative/what you give up to get something else

Products can be produced in two different ways. Either productively or allocatively efficient

• Productive means products are being used in the least costly way (Any point on the curve)

  Ex.

•  Allocative means products being produced are the ones society most desires. (Supply&Demand)

          Ex.

Reasons why PPC Shifts

• Left

1. Permanent Loss of productive capacity (war, taxes, government regulation)
2. Decrease in the labor force (work skills, edu.)

• Right

1. Technological advances
2. To discover new resources
3. Trade (comparative advantage) 

• Law of Increasing Opportunity Costs

1. AKA. Law of Diminishing return
2. When switching production to production and from one item to another, you increase a higher rate of costs
3. A higher rate of costs will be necessary to continue increasing

Key:
Shift Left= Point D
Shift Right= Point E
Capital>Consumer= Point A
Equal amounts= Point B
Consumer>Capital= Point C