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Production Possibilities Frontier (PPF)
A line or curve that shows all the possible combinations of two outputs that can be produced using all available resources
Can't be reached because there aren't enough workers
Any points that can be made with enough or fewer workers
combination of production possibilities that squeeze the most output possible from all available resources
Inside the frontier and do not use all available resources to capacity.
The ability to produce more of a good or service than others can with a give amount of resources
The ability to produce a good or service at a lower opportunity cost than others
Spending all of your time producing a particular good which has a comparative advantage, total production increases
Gains from Trade
The improvement in outcomes that occurs when producers specialize and exchange goods and services
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