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If this is not done, the PPF will indeed show that the economy is not producing a sufficient amount of its product considering the potential of its resources. This is a PPF chart:
I will use this chart to give you a personal example to demonstrate the concept of PPF. I want to use a simple example for easy understanding. One summer when I was a young kid, I began selling lemonade and frozen Kool-Aid to the neighborhood kids. I did this to save money for a bike. On the chart you see Product A, being the lemonade, and Product B, the frozen Kool-Aid. Points A, B and C represent the most efficient use of resources, by in this case, me...
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