efficient choices will be the allocatively efficient choice for society as a whole.

Why Society Must Choose

In Welcome to Economics! we learned that every society faces the problem of scarcity, where limited resources
conflict with unlimited needs and wants. The production possibilities curve illustrates the choices involved in

this dilemma.

Every economy faces two situations in which it may be able to expand consumption of all goods. In the first

case, a society may discover that it has been using its resources inefficiently, in which case by improving

efficiency and producing on the production possibilities frontier, it can have more of all goods (or at least more

of some and less of none). In the second case, as resources grow over a period of years (e.g., more labor and

more capital), the economy grows. As it does, the production possibilities frontier for a society will tend to shift
{"upload_timestamp": "2026-02-07T15:37:44.339247", "file_name": "Microeconomics3e.pdf", "total_pages": 597, "moddate": "2022-12-07T14:23:05-06:00", "file_hash": "830b81f41611ac67a490444dbb5d6aed292224606965b06965b914443c93331a", "creator": "PDFMiner", "source": "downloads\\business\\economics\\Microeconomics3e.pdf", "batch_upload": true, "source_file": "downloads\\business\\economics\\Microeconomics3e.pdf", "producer": "Prince 14.2 (www.princexml.com)", "file_size_mb": 26.99, "creationdate": "2022-12-07T14:15:44-06:00", "file_type": ".pdf", "uploaded_via": "batch_uploader", "title": "Principles of Microeconomics 3e"}