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Let's move to a different example. Consider the graph to the
left, showing choices that face some society. This society can spend its
resources on two things, education and housing.
It seems reasonable to suppose that this PPF also has the same
bowed out shape, indicating that the opportunity cost of education in terms of housing varies. This is because some resources are better used for education, and others for housing. For example, some people are better carpenters than teachers,
and vice versa.
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