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Illustrating Environmental Issues by Using the Production-Possibility Frontier: A Classroom Experiment

The authors develop a new classroom experimental game to illustrate environmental issues by using the production-possibility frontier in an introductory economics course. Waste evolves as a byproduct of the production of widgets. Environmental cleanup is produced by reallocating scarce resources away from the production of the dirty good. In addition to the description of the game and classroom discussion, the authors illustrate how the students’ experience with the game can be used as the basis for exercises on production decisions and environmental regulation.