Fig 1 The Production Possibilities Frontier Quantity of

Fig. 1 The Production Possibilities Frontier Quantity of All Other Goods per Period 1, 000 950, 000 850, 000 A At point A, all resources are used for "other goods. " B C 700, 000 500, 000 400, 000 W Moving from point A to point B requires shifting resources out of other goods and into health care. D E At point F. all resources are used for health care. F 100, 000 200, 000 300, 000 400, 000 500, 000 Number of Lives Saved per Period 1

Fig. 2 Production and Unemployment Military Goods per Period 1. Before WWII the United States operated inside its PPF. . . B 2. then moved to the PPF during the war. Both military and civilian production increased. A Civilian Goods per Period 2

Fig. 3 The Effect of New Medical Technology Quantity of All Other Goods per Period 1, 000 2. But not its vertical intercept. 4. or more lives saved and greater production of other goods. A J 700, 000 H D 1. A technological advance in saving lives increases this PPF's horizontal intercept. . . 300, 000 3. The economy can end up with more lives saved and unchanged production of other goods. . . F F' 500, 000 600, 000 Number of Lives Saved per Period 3

Fig. 4 Types of Economic Systems Resource Allocation Private Market Command Market Capitalism Centrally Planned Capitalism Market Socialism Centrally Planned Socialism Resource Ownership State 4