The production possibility curve (PPC) indicates that as more of one good is produced.

The production possibility curve (PPC) indicates that as more of one good is produced, less of the other goods is produced. This is because resources such as labor, capital, and raw materials are limited, and using them to produce more of one good means there are fewer resources available to produce other goods. The PPC shows the tradeoff between producing one good versus another, and the opportunity cost of producing more of one good is the amount of the other good that must be given up. Therefore, the PPC is a graphical representation of the concept of scarcity and the need to make choices about how to allocate limited resources.