00:01
So here we're talking about production possibilities curve, production possibilities frontier.
00:07
What is that? right.
00:08
So this is a depiction of what an economy can produce, right? it's showing you what is possible.
00:20
And conversely, what is not possible given the state of the economy, right? and that depends on things like the economy's technology, it's labor force, its skills, it's knowledge, et cetera, et cetera.
00:33
So, sorry, it's not a cue.
00:36
Let's imagine that this economy produces two goods, which i'll call a and b, right? a production possibilities frontier looks something like this, p -pf, right? so this shows you three things.
00:51
First of all, points outside this frontier, like this point, a, are impossible, right? that is simply beyond the ability of the the economy's capacity, right? we might want to have all the stuff associated with point a, but we simply can't produce that much.
01:09
In here, c, we have inefficient points.
01:15
So c is totally possible.
01:19
It's well within the economy's capacity, but we could have more...