Producing and
Trading
Production Possibilities Frontier (PPF) Represents
the possible combinations of two goods
that can be produced in a certain period of time
under the conditions of a given state of technology and fully
employed resources.
Exhibit
Production Possibilities Frontier
(Constant Opportunity Costs)
Exhibit
Production Possibilities Frontier
(Increasing Opportunity Costs)
Law of Increasing Opportunity Cost
Law of Increasing Opportunity Costs As
more of a good is produced,
the opportunity costs of producing that
good increase.
Exhibit
A Summary Statement about Increasing Opportunity
Costs and a Production Possibilities Frontier that Is
Bowed Outward (Concave Downward)
Exhibit 6 Efficiency, Inefficiency, and Unemployed Resources
within a PPF Framework
Exhibit
Economic Growth within a PPF Framework
Exhibit Production by Elizabeth and Brian
Exhibit
Consumption for Elizabeth and Brian with and
without Specialization and Trade