“Create a PPF for the Lakeside economy with a maximum consumer-goods index of 100 and capital-goods index of 80. Mark the current mix at 65 consumer goods and 36 capital goods, and a higher-investment mix at 42 consumer goods and 58 capital goods.”
図の背後にある意思決定を読み解く。
Distinguish present consumption from productive assets.
Give the discussion a reference point.
Make the current sacrifice visible.
Use this PPF for a basic lesson on saving, investment and future productive capacity.
よくある質問
Why are capital goods important?
They can increase the economy's ability to produce in future periods.
Does higher investment mean more output today?
Not necessarily; it often requires less current consumer output.
What does a future outward shift mean?
It means the economy can produce more of one or both goods than before.