Principles of Macroeconomics / Unit 18 MAC 1716 short lesson, about 20 seconds
Model Seven: The Production Possibilities Frontier
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The idea
Two goods, all resources used. The frontier shows the combinations attainable, and its slope is the opportunity cost of one good in terms of the other. Points inside are wasteful; points outside are unattainable.
In practice
Trade lets a country consume outside its own frontier without moving it.
Where people slip
Growth moves the frontier; trade moves the consumption point. Those are different claims.
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