Resources are known as factors of production and there are four of them:

1. Land, refers to all resources provided by nature for mankind's use. It includes forests, oil and mineral deposits, farmland, soil, fishing grounds and water resources. Land is not confined to its everyday usage. It means more than just a home site, a farm, or a place to build a factory. In order to be productive, however, land requires the application and assistance of the other factors. That is, before land can produce goods and services, it must be combined with labour, capital and enterprise.

2. Labour, which includes all forms of human effort used in the production process, both physical and mental. The quality of labour is determined by various factors such as the level of education and training, the ability a

By this definition, money is not capitol.

nd willingness to work, and the size of the workforce. Like land, labour is regarded as a passive factor of production. That is, labour must be organised and combined with other factors to produce goods and services.

If society is producing at alternative B, but then decides to move to alternative C, then the PPC moves. This movement involves an increase in oven production and a decline in bread production. The output of ovens increases from 15 to 45 and bread declines from 100 to 69 units. Therefore, if we are to produce an extra 30 ovens, we must sacrifice 40 units of bread. In other words, an opportunity cost is involved.

4. Society only produces two types of goods, capitol and consumer.

We can conclude that by expanding its resource supplies and improving its level of technology, the fully employed economy can increase its potential output of goods and services. In other words, the economy is capable of growth.

There are two main points involved with PPC in relation to opportunity cost. Firstly, when an economy is operating at full employment, it is only possible to increase the production of one good by sacrificing some of another. That is, at full employment, additional output always entails an opportunity cost. Secondly, in a fully employed economy, an increase in the production of capital goods can only take place at the expense of fewer consumer goods.

2. All resources are fixed in supply and can be easily transferred from production of one good to the production of another.

Some common words found in the essay are:
Intermediate Capitol, Sometimes PPC, , Overhead Capitol, opportunity cost, production possibility curve, possibility curve, production possibility, output services, produce services, bread ovens, factors production, society capable, means production, resources society, possibility curve illustrate, total output services, produced means production, words opportunity cost,
Approximate Word count = 1539
Approximate Pages = 6 (250 words per page double spaced)