Scarcity and Choice: The PPF Model
The Production Possibilities Frontier
Graphs
- The Resource Constraint
- Resource Allocation and Production Possibilities (old)
- The Resource Constraint and the PPF (constant returns)
- The Resource Constraint and the PPF (diminishing returns)
- Production Functions and the PPF (constant returns)
- Production Functions and the PPF (diminishing returns)
- Marginal Products of Labor and the MRT
- Returns to Scale and the PPF
- Shifting the PPF: Changing Capital Allocation
- The Short-Run and Long-Run PPF
- Shifting the PPF: Technology Improvements
Utility Maximization in Autarky
Graphs
- Feasible and Preferred Sets
- Utility Maximization Subject to a PPF: A Puzzle
- Utility Maximization Subject to a PPF: Cobb-Douglas (fixed)
- Utility Maximization Subject to a PPF: Cobb-Douglas (adjustable)
- Utility Maximization Subject to a PPF: Perfect Complements
- Utility Maximization Subject to a PPF: Short-Run vs Long-Run
- Utility along a PPF
- MRS vs MRT along a PPF
- The Tangency Condition
- Potential Corner Solutions
- Potential Solutions at Kinks
- Corner Solutions with Perfect Substitutes
- Corner Solutions with Quasilinear Utility
- Solutions at the Kink of a PPF
- Example of a Kinked PPF with a Tangency Solution
- Solutions at the Kink in an Indifference Curve
General Equilibrium
Graphs
- Direct Effect of a Demand Shift in One Market on Labor Demand (textbook example)
- Equilibrium Effect of a Demand Shift in One Market on Another Market (textbook example)
- Maximizing GDP subject to a PPF
- Short-Run vs. Long-Run PPF and Profit Maximization
- Preferences and the Optimal Choice in Autarky
- Preferences and General Equilibrium
- Supply Derivation
- Demand Derivation
- Production and Consumption: Two Graphs
- Production and Consumption: One Graph
- Curved PPF and Supply
- Linear PPF and Supply
- Curved PPF and Supply and Demand
- Linear PPF and Supply and Demand