00:01
All right, in this question we have a question that asks, an economy produces hot dogs and hamburgers.
00:07
If a discovery of the remarkable health benefits of hot dogs were to change consumers ' preferences, it would, a, expand their production possibilities frontier, b, contract the production possibilities frontier, c, move the economy along the production possibilities frontier, and d, moved the economy inside the production possibilities frontier.
00:24
So if we draw a hypothetical production possibilities for frontier, remember this is what it looks like.
00:32
You have an x and y -axis.
00:35
Let's label the x -axis hamburgers and the y -axis hot dogs.
00:45
The ppf would look something like this.
00:49
It's like half a quarter -circle looking graph that basically models the different combinations of hot dogs and hamburgers that this economy.
01:00
Produces, right? so let's say if the economy focused only in hamburgers wanted zero hot dogs, they would produce this amount of hamburgers right here.
01:09
They'll produce this amount of hamburgers.
01:11
If the economy decided to focus only on making hot dogs, they would produce this amount right here.
01:17
But in most economies, right, you'll be producing both hot dogs and hamburgers...