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The Production Possibility Frontier (PPF) is a curve that illustrates the most cost-effective combinations of two items that may be produced with limited resources.

The PPF curve (seen above) depicts various combinations (from P to T) of economic production and environmental protection. Combination P represents a higher level of economic productivity while providing less environmental protection. Countries with a lower income level place a higher priority on productivity, health, and nutrition than on environmental protection. Combination T represents more environmental protection and less economic production, allowing high-income countries with a high standard of living to pursue environmental restrictions.

R stands for the same amount of emphasis on economic output and environmental protection. This combination will be chosen by countries that can effectively regulate environmental laws while allocating resources efficiently and profitably.