frontier (PPF) such as the one in Figure 12.5. At one extreme, at a choice like P, a country would be selecting a

high level of economic output but very little environmental protection. At the other extreme, at a choice like T,

a country would be selecting a high level of environmental protection but little economic output. According to

the graph, an increase in environmental protection involves an opportunity cost of less economic output. No

matter what their preferences, all societies should wish to avoid choices like M, which are productively

inefficient. Efficiency requires that the choice should be on the production possibility frontier.

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12.6 • The Tradeoff between Economic Output and Environmental Protection 295

FIGURE 12.5 The Tradeoff between Economic Output and Environmental Protection Each society will have to weigh

its own values and decide whether it prefers a choice like P with more economic output and less environmental
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