Microeconomics › Section B · Choice in a world of scarcity › Topic B.2
The production possibilities frontier
A budget constraint limits one person's purchases; a production possibilities frontier limits a whole society's output. The same ideas return - efficiency, trade-offs, opportunity cost - but with a new twist: as production shifts toward one good, that good becomes increasingly costly, and the frontier bends outward.
In this topic
- Society's version of a budget constraint
- Reading the frontier
- Worked example: a village's grain and timber
- Why the frontier bows out
- Frontier versus budget constraint
- Worked example: the straight-line case
- Productive and allocative efficiency
- Growth: shifting the frontier
- A first look at comparative advantage
- Common mistakes to avoid
- Key takeaways
This topic is part of Wuanberri Pro. Checking your access…