PPC Part 2

Production Possibilities Curve

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I can define: Production Possibilities Curve, Efficient, Growth,
Inefficient

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I can illustrate: a point on a PPC, growth on a ppc.

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I can explain how a PPC shows opportunity cost.

Learning Targets

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A curve that shows the opportunity cost between two things you can produce.

Production Possibilities Curve

To make a PPC:

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Determine your most likely production options.

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Determine how much you can make of each if you just focused on one product at a time.

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Plot your maximums.

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Connect your maximums with a curve.

Production Possibilities Curve

Draw this on your note paper:

We are going to make a PPC for
Dairy Queen.

Production Possibilities Curve

Draw

Draw a PPC for Dairy Queen in which a worker can make a maximum of 100 hamburgers or 80 blizzards in an hour.

The curve represents all the places
you can possibly produce.

A point on the curverepresents where
you choose to produce at any given
moment.

Production Possibilities Curve

PPCs show that if you want to make
more of one product, you have to give
up some of another.

If we want to make more blizzards,
what is our opportunity cost?

Production Possibilities Curve

Point location:

The restaurant is closed.

The restaurant is making hamburgers
only.

The restaurant is splitting between
both products.

The restaurant is making mostly
blizzards.

Production Possibilities Curve

The curve represents all the places
you can possibly produce.

A point on the curve represents
where you are choosing to produce
at any given moment.

Any point on the curve is efficient.

Any point inside the curve is
inefficent.

Production Possibilities Curve

What if we improved our technology
or training?

Now we get a new maximum.

That’s growth.

Production Possibilities Curve

Growth on a PPC is caused by:

●

More resources (capital goods)

●

Improved technology

●

Improved worker training

Production Possibilities Curve

Draw

Draw growth on a PPC.

I can define: Production Possibilities Curve, Efficient, Growth, Inefficient

I can illustrate: a point on a PPC, growth on a ppc.

I can explain how a PPC shows opportunity cost.

Learning Targets

Match

Match the terms and definitions:

• Production Possibiilties Curve

• Growth

• Inefficient

• Impossible

• A point on PPC

A graph that shows the maximum amount of two goods that a business can produce

An increase in the amount of goods and services produced over time

Point behind the line, below maximum

Any point outside the line

The current choice for production

• A graph that shows the maximum amount of two goods that a business can produce

• An increase in the amount of goods and services produced over time

• Point behind the line, below maximum

• Any point outside the line

• The current choice for production

Hotspot

Identify the point or points on the graph that are efficient.

Hotspot

Identify the point or points on the graph that are inefficient.

Hotspot

Identify the point or pointss on the graph that are impossible.

Draw

Draw a point on the graph that represents growth.

Open Ended

What is something that might cause a PPC to shift inward? (This is a stretch question, so make your best guess).

Open Ended

After the pandemic, the government began an “Internet for All” program, committing $65 billion dollars to expand internet access across the country. 

How would this impact the PPC?

Multiple Choice

The table shows the production possibilities for a country. Based on the table, which of the following production combinations is a possibility?

• 28 pizzas and 5 pairs of shoes

• 3 pairs of shoes and 23 pizzas

• 2 pairs of shoes and 20 pizzas

• 4 pairs of shoes and 15 pizzas

Multiple Choice

The opportunity cost of increasing production from 7 to 9 trucks is

• Scarcity
• 2 boats
• 2 trucks
• 3 boats

Multiple Choice

Which point represents "resources are not being used efficiently, or resources are being wasted or idle"?

• Point A
• Point Y
• Point X
• All of the above

Multiple Choice

The production possibilities curve is an illustration of what?

• Opportunity costs and trade-offs
• Only opportunity costs
• Only trade-offs
• none of the above

Multiple Choice

What will be the maximum number of capital goods the country can produce if it devotes all its resources to making capital goods?

• 30

• 60

• 75

• 100

Multiple Choice

What does point Y represent on the PPC?

• Efficiency
• Unattainable / impossible
• Inefficency
• Nothing