any other, either healthcare increases and education decreases or vice versa. However, any choice inside the

production possibilities frontier is productively inefficient and wasteful because it is possible to produce more

of one good, the other good, or some combination of both goods.

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2.2 • The Production Possibilities Frontier and Social Choices 37

For example, point R is productively inefficient because it is possible at choice C to have more of both goods:
education on the horizontal axis is higher at point C than point R (E2 is greater than E1), and healthcare on the
vertical axis is also higher at point C than point R (H2 is great than H1).

We can show the particular mix of goods and services produced—that is, the specific combination of selected

healthcare and education along the production possibilities frontier—as a ray (line) from the origin to a specific
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