1. The possibilty curve in economics is used to represent the production possibilities curve. It gives a visual representation of the various outputs that can be produced. This curve can represent whats attainable, not attainable, and the factors of underemployment of resources, inefficiency in resource use, or inappropriate use of technology.
2. The possibility curve depicts how much of one product can be produced versus another product being produced. If scarcity of a resource exists increasing production of the other product results. Scarcity forces choice which involves opportunity costs and something has to be given up.
3. & 4 When I decided to go back to school I had many choices to make. I had to give up a lot of income in order to find a job that i could work around the two schedules. This decision not only effected me but my entire family had to make sacrifices in order to make it happen. Paying a mortgage and raising two children, while going to school looked virtually impossible. Spending of almost every kind other than necessities stopped in order to afford tuition. I had to give up valuable time with my children to do school, and remain dedicated throughout many times of frustration. Money was the biggest opportunity cost for me in deciding to return to school. It may cost money now but the investment will pay off in the end to a happier, wealthier, and healthier life.
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