1. Chapter 1.3: Production Possibilities Curve

2. Slide 2 Copyright © Pearson Education, Inc.Chapter 1, Section 3 Production Possibilities Curve –How many watermelons can Capeland produce if they are making 9 million pairs of shoes? –What will the opportunity cost be if Capeland increases shoe production to 12 million?

3. Slide 3 Copyright © Pearson Education, Inc.Chapter 1, Section 3 Law of Increasing Costs

4. Slide 4 Copyright © Pearson Education, Inc.Chapter 1, Section 3 Technology and Education Technology can increase a nation’s efficiency. Many governments spend money investing in new technology, education, and training for the workforce.

5. Slide 5 Copyright © Pearson Education, Inc.Chapter 1, Section 3 Review Now that you have learned about how a nation decides what and how to produce, go back and answer the Chapter Essential Question. –How can we make the best economic choices?