1. Warm Up #6
How did Ford’s assembly line revolutionize the way our products are made?
When Coca Cola comes out with a new flavor, what do you think they produce more of- classic Coca Cola or the new stuff? Explain.

2. 2/24/2011, Production Possibilities SWBAT simulate production possibilities and plot them on a PPF graph
Homework
Agenda
Study for Quiz #3 Thursday-Friday
Work on Comic Strip
Warm Up #6
Review Quiz #2
Key Terms in Textbook
Activity: Mad Libs
Graph Production Possibilities Frontier

3. Warm Up #6
How did Ford’s assembly line revolutionize the way our products are made?
When Coca Cola comes out with a new flavor, what do you think they produce more of- classic Coca Cola or the new stuff? Explain.

4. Hello CEO
Pretend you are the CEO of a corporation. You want to launch a new product but you only have one factory.

5. You will have to stop producing the original product on the factory machines for a few hours per day to make time for the new product

6. What are the risks?
If the new product sells really well in the markets, what would the next steps be?
And if the new product sells just kind of well?
And what if the new product fails horribly? What are your costs?

7. Remember Mad Libs?
Fill in the blanks for the following mad libs scenario.
Yes, you have to copy it
Keep it tasteful

8. Hello, my name is _______________ (insert fake name)
Hello, my name is _______________ (insert fake name). I am CEO of ________________(insert fake company). Here at _______________ (insert fake company), we specialize in producing _______________ (insert fake product). Recently, however, we have decided to expand our business and add _________________(insert another fake product) to our line as well. I know people will buy it because it can ___________ (insert function of product). Let’s see how much of this new product we can manufacture concurrently with our old product.

9. Observe and create data
Round
Product A
Product B 1 2 3 6 4 9 5

10. Let’s start producing! Product A
Fold paper twice and tear it into fourths
Stack the four little pieces of paper and staple them together
VOILA! There’s your product!

11. Product B Fold paper the hot dog way Then fold paper the hamburger way
Then staple it shut in the middle
With a marker, draw an ‘X’

12. Production Possibilities Frontier
What is the opportunity cost of producing either more product A or more product B?
Why is there an opportunity cost of producing more of either item?
How would your having another stapler and a pair of scissors changed your ability to produce goods and services?
What is the economic term for the stapler, scissors, and “factory”?

13. Let’s Graph It!

14. Guiding Questions
How is the visual representation of this information helpful to you as a CEO?
Where in the PPF graph is it most rational to produce both?
If a firm (business) is producing product A and product B inside its PPF, how efficiently is it using its resources?

15. Comic Strip Assignment
Fold your paper into 8 squares
1st square must include title, name, date, period
ALL SQUARES MUST INCLUDE CAPTION AND MUST PROPERLY ADDRESS ALL 6 VOCABULARY WORDS
Create a comic strip illustrating a scenario in which you can apply the 6 economic concepts

16. Economic Terms Efficiency Production Possibility(ies) Mixed Economy
Opportunity Cost
Marginal Change
Scarcity