Construct a production possibilities curve, be sure to properly label the axes.

To construct a production possibilities curve (PPC), follow these steps:

1. Determine the two goods or services you want to represent on the PPC. Let's say we choose "widgets" and "gadgets."

2. Set up a graph with two axes. The horizontal axis represents the quantity of widgets, and the vertical axis represents the quantity of gadgets. Label the axes accordingly.

3. Decide on the maximum possible quantities of widgets and gadgets that can be produced, given the available resources and technology. For example, let's say the maximum quantity of widgets is 100 and the maximum quantity of gadgets is 80.

4. Plot a few points on the graph that represent different combinations of widget and gadget production. For example, you could plot the point (20, 40) to represent a combination where 20 widgets and 40 gadgets are produced.

5. Connect the plotted points with a line to form the PPC. Make sure to label the curve as the "Production Possibilities Curve" and indicate the units of measurement for each axis.

6. The curve should be concave, meaning it is bowed outwards. This represents the concept of increasing opportunity costs. As you produce more of one good, the opportunity cost of producing an additional unit increases.

Remember, the specific values and shape of the PPC will depend on the particular scenario and assumptions you make.