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Social Sciences and History / Unit 13   SSH 1208 short lesson, about 20 seconds

The PPF: Outside, Inside, On

Captions available

The idea

The production possibilities frontier shows the combinations of two products an economy can produce. It curves outward. Points outside are unattainable; points inside are wasteful; a growing economy shifts it outward. The law of diminishing returns explains the curve: added resources yield smaller output gains.

In practice

Guns and butter.

Where people slip

The glossary says marginal benefit; the summary's output form governs.

Your place on the trail

Every lesson rests on earlier ones and opens later ones. Tap any to jump.

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