1. Warm Up
Explain what a production-possibilities curve shows

2. Thursday, September 3, 2015
Objective: Students will be able to interpret a production- possibilities curve and explain the concepts of opportunity costs and scarcity.
Purpose: Every decision that you make is based on opportunity cost. You can choose what your opportunity costs are based on the resources available.

3. Shifting Production Possibilities Curves
One of the following must occur in order for the PPF to move beyond its current position/expand
Improve technology
Add more resources

4. What an Expanding PPF Shows
Economic growth due to an increase in resources
Allows the amounts of BOTH goods in any production combination to increase
Increased productivity
The importance of capital in an economy

6. Shifting Production Possibilities Curves
One of the following must occur in order for the PPF to shrink inward
Less technology
Less resources