A Model Illustrating Scarcity, part II

Many models in economics can be expressed by diagrams. Here is a diagram of the production possibility frontier in the table on the previous page. A combination of food and machines is said to be "feasible" if the economy has enough resources to produce both.In the figure, all feasible combinations of food and machinery are on or underneath the curve. Combinations above the curve are not feasible -- there is not enough resources to produce that much of both.

Figure 1

An Interactive Example