This lesson explains the productive capacity of every country using its existing resources. This productive capacity is usually presented on a Production Possibility curve (PPC). The graph explains how a country can produce a combination of two goods that is capital goods and consumer goods.
At the End of this lesson students should:
Know the differences between economic growth and economic development.
Know the factors that can influence an outward shift of the PPC( economic growth)
Know the advantages and disadvantages of economic growth in every economy.