00:01
So here we're talking about a production possibilities model, which is a dis -economic, is designed to show us the economic possibilities of a society, right? so let me draw one and try to convey what's going on.
00:17
So we have x and y.
00:20
These are two goods that the economy could produce, and we have a curve like this, right? the curvature reflects the trade -off, right? which i'll come back to.
00:31
So this shows the possibilities that we can produce.
00:38
So if we have a point like a here, this point a is impossible, right? it is outside the ability of our economy to produce.
00:49
It is too much stuff, right? that black line is showing us what we're capable of producing.
00:55
So it is simply impossible, right? scarcity is too.
01:00
Too great.
01:03
We would love to be able to produce a, but we don't have the resources to do it, right? scarcity prevents us from getting to a, as opposed to, say, b, which is wasteful, right? and b, we could be producing so much more, right? b, we, you know, if this b is, say, 150, we could instead be producing at a point like c, which is like 150.
01:34
And 200...