Construction of Consumption Possibility Frontiers in Principles Textbooks
The authors of principles textbooks face a tradeoff between (1) keeping their analysis simple and understandable and (2) presenting the material accurately, by including explanations of more complex nuances. I contend that in constructing and graphically depicting a consumption possibility frontier (CPF), many authors have not balanced the objectives of simplicity and accuracy. The result is erroneous, internally inconsistent, and confusing presentations. Furthermore, the price of achieving accuracy is small. Hyman (1994; 521) defined CPFs as curves showing "combinations of two goods a nation can consume, given its resources, technology, and international trade." But CPFs also depend on the resources and technology of one's trading partner(s). McEachern (1994; 508) stated,