Chap002.4 - Comparative Advantage and Production...

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4 Chapter 2: Comparative Advantage: The Basis for Exchange Slide 19 Comparative Advantage and Production Possibilities ± The Production Possibilities Curve z Attainable Point ² Any combination of goods that can be produced using currently available resources z Unattainable Point ² Any combination that cannot be produced using currently available resources Chapter 2: Comparative Advantage: The Basis for Exchange Slide 20 Comparative Advantage and Production Possibilities ± The Production Possibilities Curve z Efficient Point ² Any combination of goods for which currently available resources do not allow an increase in the production of one good without a reduction in the production of the other Chapter 2: Comparative Advantage: The Basis for Exchange Slide 21 Comparative Advantage and Production Possibilities ± The Production Possibilities Curve z Inefficient Point ² Any combination of goods for which currently available resources enable an increase in the
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