Use the PPC to Illustrate Scarcity, Choice, Constant Opportunity Costs

Essay

Use the PPC to illustrate scarcity, choice, constant opportunity costs, and the law of increasing marginal opportunity cost.
-In the 1980s, rates of growth in Japan were higher than in the United States. One argument given for the stronger growth in Japan was higher level s of investment. Draw a PPC for both the United States and Japan. On the axes, label the goods as investment goods and consumption goods. Use these two diagrams to explain why Japan experienced faster growth than did the United States.