Class Summary 10/21

"People co-operate to get more of what they want."

• What's the sole purpose of production? CONSUMPTION
• Trade produces more wealth in other countries. 
• Even if exchange doesn't create any value its a pre-requisite for creating products that we do value. 
• Good trade is where the gains are shared equally (Rizzo's yard work example)

This all leads to Production Possibilities Frontier (PPF), a chart that shows all the possible combinations of products we can produce with current resources and technologies.