Production Possibilities

Slides:

Advertisements

Similar presentations

The Production Possibilities Curve

Advertisements

Introduction to Budget Lines and Production Possibilities Curves.

1 The Model of Production Possibilities This is a basic model designed to highlight the impact of scarcity on an economic system.

Unit 1: Basic Economic Concepts

Chapter 2 Section 2.  How much can an economy produce with the resources available? What are the economy’s production capabilities?  Simplifying Assumptions.

Module 3- The Production Possibilities Curve

The Production Possibility Curve (Production Possibility Frontier)

AP Economics Mr. Bernstein Module 3: The Production Possibilities Curve September 11, 2014.

Recall Opportunity cost is the value of the best forgone alternative.

Section 2.2 Production Possibilities Frontier (40)

Scarcity, Opportunity Costs, and Production Possibilities Curves: Reviewing Chapter 2 through the Homework.

CHAPTER 1, SECTION 3- TRADE-OFFS & OPPORTUNITY COSTS

Thinking Like an Economist

Unit 1: Basic Economic Concepts

Unit 1: Basic Economic Concepts 1. Society has unlimited wants but unlimited resources The Economizing Problem… Scarcity WE HAVE A PROBLEM!! 2.

Unit 1: Basic Economic Concepts

Unit 1-3: Basic Economic Concepts

The PPC . Because resources are scarce, economies cannot have an unlimited output of goods and services. So, societies must choose which goods and services.

Chapter 1 The Economic Way of Thinking

One good sacrificed for another Cannot have both.

KEY CONCEPTS  Production possibilities curve (PPC) is one model (graph)  PPC shows the maximum goods or services that can be produced from limited resources.

Welcome to PMBA0608: Economics/Statistics Foundation Fall 2006 Sessions 3: August 26.

Scarcity and Choice Opportunity Cost. Opportunity cost is that which we give up or forgo, when we make a decision or a choice.

Unit 1: Basic Economic Concepts

67. The law of increasing opportunity costs exists because:

Production Possibilities Curve A curve that shows the different combinations of two goods that the economy can produce, given its resources and the level.

Production Possibilities Curve. Economic Model An economic model attempts to abstract from complex human behavior in a way that sheds some insight into.

Unit 1 – Production Possibilities Curves

Production Possibilities Curve

Learning Objective: Today I will be able to apply the law of opportunity cost by drawing the PPF curve when it shifts or moves along the curve. Agenda.

Chapter 1 Section 3 Trade Offs and Opportunity Costs.

Unit 1: Basic Economic Concepts

Unit 1: Basic Economic Concepts

Unit 1: Basic Economic Concepts

Production Possibility Curve

DECISION MAKING AT THE MARGIN

Economics Ms. Curran August 17.

Production Possibilities Curve

Module 3: The Production Possibilities Curve

Unit 1: Basic Economic Concepts

1c – Production Possibilities

Unit 1: Basic Economic Concepts

Unit 1: Basic Economic Concepts

Basic Economic Concepts

[ 1.3 ] Production Possibilities Curves

Production Possibilities Curve

D C B Capital Goods A Consumer Goods

Unit 1: Basic Economic Concepts

Econ “Analyzing Production Possibilities”

Unit 1: Basic Economic Concepts

The Production Possibilities Curve and Efficiency

Production Possibilities Curve

Production possibilities curve

ECONOMIC DECISION MAKING

AP ECONOMICS: August 31 Learning Target In order to understand why people and countries specialize and trade, I will learn the principles of absolute.

Economics Production Possibilities Curves (PPC)

5 minutes Warm-Up Solve. 1) 2) 3) 4).

Unit 1: Basic Economic Concepts

Thinking Like an Economist

Unit 1: Basic Economic Concepts

Unit 1: Basic Economic Concepts

Bell Ringer Login into Google Classroom and answer the questions for pg minutes Google Classroom Code: p7bymom.

Unit 1: Basic Economic Concepts

Unit 1: Basic Economic Concepts

Unit 1: Basic Economic Concepts

Unit 1: Basic Economic Concepts

Unit 1: Basic Economic Concepts

Economic Fundamentals: Basic Concepts Production Possibility Curve

Production Possibility Curve / Frontier

Unit 1: Basic Economic Concepts

Presentation transcript:

Production Possibilities 2.2

I. Efficiency & Production Possibilities Simplifying Assumptions (p.42) Two broad classes of products Given time period (year) Resources are fixed No new advances (in that time period) PPF—Production Possibilities Curve=PPC

PPC Shows all the combinations of goods/services that can be produced from a fixed amount of resources in a given period of time This graph can apply to any resource. The two broad classes are capital : consumer

II. Shifts of the PPC Resource Availability Increase PPC shifts Decrease PPC shifts OUT IN

II. Shifts of the PPC B. Capital good efficiency Increase this year’s capital goods increase next year’s production (shift OUT) Failure to maintain capital goods decrease next year’s production (shift IN) C. Changes in Technology

PPC and Opportunity Costs Mr. Fendrych www.youtube.com/watch?v=E3tkrkgLo5Q&feature=related Let this teacher review with you for 5:49 minutes. There will be a quiz tomorrow 