The graphs simply represent production, full employment and technology which are the most driving forces of our economy today. With regard to these possibilities curves, individuals, businesses and governments spend most of their time trying to make some good decisions based on production, employment and technology, and if decisions are made wisely, it would benefit the whole society.
We are all aware of the fact that there are limited resources to satisfy our wants, which means we are faced with scarcity all the time; that is loss of income. Another factor that many people and I deal with on daily basis is the opportunity cost. As you know, life is all about choices we make every day and that where opportunity cost comes into play.
Two years ago, I made a decision to go back to school so I would be able to earn higher income than what I was getting while working at retail store. Having gave up my full-time job and went back to me was an opportunity cost; which eventually resulted in loss of income in order for me to gain some knowledge and head out for better future.
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