Production Possibilities Curves. The production possibilities frontier is a graph that shows the combinations of output that the economy can possibly.

Slides:



Advertisements
Similar presentations
Interdependence and the Gains from Trade
Advertisements

The Production Possibilities Curve
Ten Principles of Economics
Copyright © 2004 South-Western/Thomson Learning 2 Thinking Like an Economist.
Copyright © 2004 South-Western/Thomson Learning 3 Interdependence and the Gains from Trade.
Copyright © 2004 South-Western 3 Interdependence and the Gains from Trade.
3 Interdependence and the Gains from Trade. Copyright © 2004 South-Western Consider your typical day: You wake up to an alarm clock made in Korea. You.
Copyright © 2004 South-Western/Thomson Learning 2 Thinking Like an Economist.
Chapter Interdependence and the Gains from Trade 3.
Economic Thinking Economics as a social Science The scientific method –Observation, Theory, and Testing –Assumptions and ceteris paribus –Avoiding flaws.
Interdependence and the Gains from Trade
3 Interdependence and the Gains from Trade.  Consider your typical day: You wake up to an alarm clock made in Korea. You pour yourself orange juice made.
ECON202, Maclachlan, Spring Interdependence & Gains from Trade Week 2.
Economic Thinking Economics as a social Science The scientific method
© 2007 Thomson South-Western. Consider your typical day: You wake up to an alarm clock made in Korea. You pour yourself orange juice made from Florida.
INSCRIPTION ON A FORTUNE COOKIE
Module 3- The Production Possibilities Curve
© 2007 Thomson South-Western. Economic Systems © 2007 Thomson South-Western What is an Economic System? It’s the method used by society to produce goods.
Interdependence and the Gains From Trade
Copyright © 2004 South-Western/Thomson Learning 3 Interdependence and the Gains from Trade.
3 Interdependence and the Gains from Trade. Consider your typical day You wake up to an alarm clock made in Korea. You pour yourself orange juice made.
Copyright © 2004 South-Western/Thomson Learning 3 Interdependence* and the Gains from Trade Vísar til þess að þjóðfélög eru gagnkvæmt háð hvert öðru.
Chapter 1: What is Economics? Section 3. Slide 2 Copyright © Pearson Education, Inc.Chapter 1, Section 3 Objectives 1.Interpret a production possibilities.
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Interdependence and Trade Remember, economics is the study of how societies produce.
© 2007 Thomson South-Western. Consider your typical day: You wake up to an alarm clock made in Korea. You pour yourself orange juice made from Florida.
Economic Thinking Economics as a social Science The scientific method –Observation, Theory, and Testing –Assumptions and ceteris paribus –Avoiding flaws.
Chapter Scarcity and Choice 2. Chapter How People Interact Principle 5: Trade can make everyone better off Trade – Specialization Allows each person/country.
Copyright © 2006 Thomson Learning 3 Interdependence and the Gains from Trade.
Economics 1/22 & 1/23 Warm Up at your desk! Check your homework first, make necessary changes and then complete the warm up!
Copyright © 2004 South-Western/Thomson Learning Thinking Like an Economist.
Copyright © 2004 South-Western/Thomson Learning 3 Interdependence and the Gains from Trade.
Copyright © 2004 South-Western/Thomson Learning 3 Interdependence and the Gains from Trade.
Copyright © 2006 Thomson Learning 2 Thinking Like an Economist.
Chapter 3 Interdependence and the Gains from Trade.
Economics Chapter 1 Section 3.
Copyright © 2004 South-Western/Thomson Learning 3 Interdependence and the Gains from Trade.
Why do we trade? Comparative Advantage. Benefits of trade  Consider your typical day:  You wake up to an alarm clock made in Korea.  You pour yourself.
THINKING LIKE AN ECONOMIST CHAPTER 2. Thinking Like an Economist Economics trains you to... – Think in terms of alternatives. – Evaluate the cost of individual.
One good sacrificed for another Cannot have both.
Standard Address 12.1 Students understand common terms & concepts and economics reasoning. CONTEMPORARY ECONOMICS: LESSON 2.2.
Copyright © 2004 South-Western/Thomson Learning Economic Models Economics trains you to.... Think in terms of alternatives. Evaluate the cost of individual.
Scarcity and Choice Opportunity Cost. Opportunity cost is that which we give up or forgo, when we make a decision or a choice.
© SOUTH-WESTERN  12.1 Students understand common terms & concepts and economics reasoning. Standard Address Objectives  Describe the production.
Chapter 1: What is Economics? Section 3. Slide 2 Copyright © Pearson Education, Inc.Chapter 1, Section 3 Objectives 1.Interpret a production possibilities.
Production Possibilities Curve. Imagine… that we decided to do a fundraiser. We found 10 metal sheets in the back of the school, and we decided to use.
Quantity of Computers Produced 0 Quantity of Cars Produced 3,000 1,000 PRODUCTION POSSIBILITIES CURVE The production possibilities curve is a graph showing.
Copyright © 2004 South-Western/Thomson Learning Economic Models Economics trains you to.... Think in terms of alternatives. Evaluate the cost of individual.
3 Interdependence and the Gains from Trade. Consider your typical day: – You wake up to an alarm clock made in ______. – You pour yourself orange juice.
Thinking Like an Economist Every field of study has its own terminology Mathematics integrals  axioms  vector spaces Psychology ego  id  cognitive.
2 Thinking Like an Economist. Economics trains you to.... – Think in terms of __________. – Evaluate the cost of individual and social _______. – Examine.
3 Interdependence and the Gains from Trade. Consider your typical day: – You wake up to an alarm clock made in ______. – You pour yourself orange juice.
Copyright © 2004 South-Western/Thomson Learning 3 Interdependence and the Gains from Trade.
OPPORTUNITY COST What you write: We consider the costs and benefits of each of the alternatives What you need to know: How do we make decisions? Everything.
Chapter 1 Section 3 Trade Offs and Opportunity Costs.
Economic Choices And Decision Making
Interdependence and the Gains from Trade
Econ “Analyzing Production Possibilities”
Look at your clothes, bag and anything you have on you
© 2007 Thomson South-Western
A Parable for the Modern Economy
Interdependence and the Gains from Trade
Thinking Like an Economist
Interdependence and the Gains from Trade
Interdependence and the Gains from Trade
Interdependence and the Gains from Trade
Warm Up Explain what a production-possibilities curve shows.
Principle #2: The Cost of Something Is What You Give Up to Get It.
Interdependence and the Gains from Trade
Interdependence and the Gains from Trade
Interdependence and the Gains from Trade
Presentation transcript:

Production Possibilities Curves

The production possibilities frontier is a graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology. Its purpose is to simplify and help explain our economy.

Figure 2 The Production Possibilities Frontier Copyright©2003 Southwestern/Thomson Learning Production possibilities frontier A B C Quantity of Cars Produced 2, , ,000 3,000 1,000 Quantity of Computers Produced D

Our Model: The Production Possibilities Frontier Concepts Illustrated by the Production Possibilities Frontier Efficiency Tradeoffs Opportunity Cost Economic Growth

Figure 3 A Shift in the Production Possibilities Frontier Copyright © 2004 South-Western E Quantity of Cars Produced 2, , ,000 3,000 1,000 Quantity of Computers Produced A

Table 1 The Production Opportunities of the Farmer and Rancher Copyright © 2004 South-Western

Figure 1 The Production Possibilities Curve Potatoes (ounces) A 0 Meat (ounces) (a) The Farmer’s Production Possibilities Frontier If there is no trade, the farmer chooses this production and consumption. Copyright©2003 Southwestern/Thomson Learning

Figure 1 The Production Possibilities Curve Copyright©2003 Southwestern/Thomson Learning Potatoes (ounces) B 0 Meat (ounces) (b) The Rancher’s Production Possibilities Frontier If there is no trade, the rancher chooses this production and consumption.

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2025 SlidePlayer.com. Inc. All rights reserved.