Copyright © 1995-2004 OnLineTexts.com - All Rights Reserved
Finally, the entire PPF can shift out due to technological changes that improve
production in all areas, overall increases in productivity, or
the acquisition of additional resources.
Such a shift can make previously unattainable outputs available.
Note, however, that such improvements don't do away with opportunity
costs at all. Along the new, higher PPF, education must still be given up to attain more housing and vice versa. This is an inescapable reality of the physical
universe. However, as always, when resources are unemployed (when
we are under rather than on the PPF), opportunity cost can be zero.
Copyright © 1995-2004 OnLineTexts.com - All Rights Reserved