Cao AP Lab

AP Macroeconomics · Unit 1 · Topic 1.2

Points on the PPC

Where an economy sits on its graph tells you how well it uses its resources. Drag the economy around, place real scenarios, and find the one move that costs nothing.
Case study 1 · Efficient, inefficient, unattainable

Identify the economy

Point E is an economy making consumer goods and capital goods. Drag it anywhere, or tap the graph to move it. Watch what each spot says about its resources.

Caoland's possibilities

25501001250255075100125Capital goodsConsumer goodsInefficientUnattainableEfficientE

Point E is

Efficient

Using all of its resources.

Every resource is in use. The only way to get more of one good is to give up some of the other.

  • On the curve, not visited yet
  • Inside, not visited yet
  • Outside, not visited yet
Case study 2 · Scenario check

Place the scenarios

Each card describes an economy. Drag it onto the part of the graph where that economy sits, or tap the card and then tap the spot.

Scenarios · 0 of 3 placed

Pick up a card, then drop it on the curve, inside it, or outside it.

Drop it where it belongs

Case study 3 · When nothing is given up

The free move

Caoland is in a recession at point R, inside its PPC. Drag R up to the curve. Then keep going along the curve and compare what each move costs.

Out of the recession

2550751001250255075100125Capital goodsConsumer goodsInefficientUnattainablestartR

Gained since point R

0 consumer goods0 capital goods

Drag R up and to the right, toward the curve.

  • Reach the curve
  • Slide along it

Lab summary

Each case study unlocks one big idea

  1. Efficient, inefficient, unattainable

  2. Scenario check

  3. When nothing is given up