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The first principle of economics discussed in Chapter 1 is that people face trade-offs. Use a production possibilities frontier to illustrate society's trade-off between two "goods"$-$a clean environmentand the quantity of industrial output. What do you suppose determines the shape and position of thefrontier? Show what happens to the frontier if engineers develop a new way of producing electricitythat emits fewer pollutants.
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the question three is asking us to draw a production probability frontier to illustrate a tradeoff between a clean environment and our output. So I would say the X axis here indicates I'm clinging moment and white access is out with off the firm. So we we clearly know that they're thieves to item stay, have, ah, negative correlation. Because if we want a very clean environment, we cannot produce much and we want to produce a lot. The environment must be polluted somehow. So you would release to y two dots here and then connect them with a comebacks function because, well, I think that when when we produce a lot of output in order to make the the environment a little bit cleaner, we have to sacrifice a lot. So So the Kirby's like, steeper on the left hand side because when you're already polluting the environment, the one the time you forever that you can make to make the environment a little bit more a little bit cleaner is by sacrificing a lot off the output. Urbanist like Arnold right inside of the graph, if you like, does not produce a lot and you you start to produce the later but it is only going to make your environment a little bit polluted. So that's the idea. So was the next question. Also show what happens to the frontier of engineers? Develop a new weight to off producing electricity that emits fewer pollutants. So we can see that if now we have a new technology that produced more outputs without polluting the environment or or so So I say that without meeting so many bet Ah, good molecules into the air so we can see that. Like if you fix the cleaners off the environment, this technology helped people produce more output. So we can see that this is the case for every cleaners. So this if frontier will, like, go up. So sorry. No, no, no. Will he race this that So? The idea is that the blacker will shift up. It's like something like the spears. When you produce nothing, the cleaners off the environment is the same as the old level. But now, even if you produce like over the excesses is extended here. Even if you produce this much, the cleanest is just your Oh, so the difference here is what the advantage that the new technology has brought us because with for a certain amount of cleaners, we can produce more output output, so the production possibility frontier just shift upward.
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