Principles of Macroeconomics / Unit 17 MAC 1607 short lesson, about 20 seconds
Consuming Beyond the Frontier
Captions available
The idea
Trade does not move a country's production possibilities frontier. It lets the country consume at a point outside it, by producing one thing and exchanging for the other.
In practice
Production stays on the frontier; consumption moves beyond it.
Where people slip
This is the single most exam-relevant sentence in the unit, and the two points are different points.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Something wrong in this lesson? Flag it · Sources for Principles of Macroeconomics