resources go to healthcare and at B, most go to healthcare. At D most resources go to education, and at F, all go to

education.

Figure 2.3 shows healthcare on the vertical axis and education on the horizontal axis. If the society were to

allocate all of its resources to healthcare, it could produce at point A. However, it would not have any resources

to produce education. If it were to allocate all of its resources to education, it could produce at point F.

Alternatively, the society could choose to produce any combination of healthcare and education on the

production possibilities frontier. In effect, the production possibilities frontier plays the same role for society

as the budget constraint plays for Alphonso. Society can choose any combination of the two goods on or inside

the PPF. However, it does not have enough resources to produce outside the PPF.

Most importantly, the production possibilities frontier clearly shows the tradeoff between healthcare and
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