In this scenario #2, the solid blue curve represents a production possibilities curve (PPC). Assuming inefficiency due to labor market discrimination, place a ‘black’ dot for “A” at coordinates (2,5), ‘B’ at coordinates (1,6), ‘F’ at coordinates (4,4 and ‘G’ at coordinates (3,6). Also represent on the PPC a point “C” at the coordinates (2,8); a point “D” at (5,7) and a point “E” at (7,5). Drag ‘black’ dots to these points and with purple arrows construct a ‘triangle’ representing moves that are ‘pareto optimal’ from Point ‘A’.
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