00:01
Deciding this trade -off and where we should lie on it when it comes to output and equality oftentimes has to do with the political system.
00:08
Decisions are made here, of course, within most countries, most systems.
00:13
We have politics, and that's sort of where these decisions are made.
00:16
And a lot of this is going to come down to maybe the tax system or certain assistance programs.
00:24
Now decisions regarding these are going to have different effects on output and equality, and we can take a look at this.
00:30
This using the this production possibilities frontier.
00:33
What we should note is this piece where it's upward sloping.
00:37
So this is the point at which both output and equality are benefiting from something.
00:42
So what we're seeing is output is increasing and equality is increasing.
00:46
So this might be a program such as education help.
00:50
So this would be things that help the, you know, lower income students or families receive the education that they otherwise won't be able to afford.
01:00
Okay, so thereby we are increasing equality.
01:03
We also know that education and highly skilled workers help to improve output.
01:07
Okay, great, so we're also increasing in output in this particular instance.
01:11
We see this increase here as a result of these education assistance programs and also this increase in equality...