Format and Instructions for Assingment #2

Standard EF2 and EF3

Title: Production Possibilities Cruve; Rational Decision Making; and Specialization

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  If I owned a busniess, a Production Possibilities Cruve  illustrates the production possibilities of an economy--the alternative combinations of two goods that an economy can produce with given resources and technology. Two factors that cause an outward shift would result when there is an improvement in technology that would benefit both types of goods and a increase in the workforce which would result in mor factor resources being exploited.
• The best way to determine whether or not we are making a rational economic decision is by using specialalization, a country can produced the thing that it can do rest, rather than diving up its resources.If countries trades are goods that they produce for other goods in which they don't have a compartive advantage both countries will be able to enjoy both products at lower opportunity cost

this standard helps me with my understanding of the graphs and how business work usin PPC graghs it's a BIG help on undersatnding how the graph ad the capitial goods work to together in the ggraph to show how the opportunity cost could increase or decrease