Principles of Macroeconomics / Unit 1 MAC 0022 short lesson, about 20 seconds
Why the Frontier Bows Outward
Captions available
The idea
The frontier bows outward because resources are not equally suited to every use, so each extra unit of one good costs more than the last.
In practice
The curve is flat near one end and steep near the other.
Where people slip
That is the law of increasing opportunity cost, and it is what makes the frontier curve where a budget constraint stays straight.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Unlocks
- Nothing yet depends on this.
Something wrong in this lesson? Flag it · Sources for Principles of Macroeconomics