{"id":4747,"date":"2017-07-01T02:48:17","date_gmt":"2017-07-01T02:48:17","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/chapter\/outcome-the-production-possibilities-frontier\/"},"modified":"2024-04-26T00:55:31","modified_gmt":"2024-04-26T00:55:31","slug":"introduction-to-the-production-possibilities-frontier","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/chapter\/introduction-to-the-production-possibilities-frontier\/","title":{"raw":"Introduction to the Production Possibilities Frontier","rendered":"Introduction to the Production Possibilities Frontier"},"content":{"raw":"

What you'll learn to do: illustrate society\u2019s trade-offs by using a\u00a0production possibilities frontier (or curve)<\/h2>\r\n[caption id=\"attachment_6152\" align=\"aligncenter\" width=\"301\"]\"Photograph Lyndon Baines Johnson<\/strong>:\u00a036th President of the United States[\/caption]\r\n\r\nIn the previous sections of this module, we explored how individuals make choices about how to spend their budgets. In this section, we expand that idea to look at how societies make choices about what goods and services to produce.\r\n\r\nDuring the 1960s, President Lyndon Johnson attempted two major, costly initiatives: launching the \"War on Poverty,\" and expanding the Vietnam War. The results were not as nice as he expected because he was unable to completely tackle both issues, and he ignored what economists call the production possibilities frontier\u00a0<\/strong>(also called the production possibilities curve<\/strong>). In brief, societies have limited resources, so they face trade-offs just as individuals do.\r\n\r\nThe production possibilities frontier (or PPF, for short) is a model of the economy as a whole, which shows all possible\u00a0combinations of goods, products, or services that a society could produce, given the resources it has available.","rendered":"

What you’ll learn to do: illustrate society\u2019s trade-offs by using a\u00a0production possibilities frontier (or curve)<\/h2>\n
\"Photograph<\/p>\n

Lyndon Baines Johnson<\/strong>:\u00a036th President of the United States<\/p>\n<\/div>\n

In the previous sections of this module, we explored how individuals make choices about how to spend their budgets. In this section, we expand that idea to look at how societies make choices about what goods and services to produce.<\/p>\n

During the 1960s, President Lyndon Johnson attempted two major, costly initiatives: launching the “War on Poverty,” and expanding the Vietnam War. The results were not as nice as he expected because he was unable to completely tackle both issues, and he ignored what economists call the production possibilities frontier\u00a0<\/strong>(also called the production possibilities curve<\/strong>). In brief, societies have limited resources, so they face trade-offs just as individuals do.<\/p>\n

The production possibilities frontier (or PPF, for short) is a model of the economy as a whole, which shows all possible\u00a0combinations of goods, products, or services that a society could produce, given the resources it has available.<\/p>\n\n\t\t\t

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Candela Citations<\/h3>\n\t\t\t\t\t
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CC licensed content, Original<\/div>