Production Possibilities Curve

What was the bell activity?

• Talk about point E in the PPC graph

• Watch a video about the PPC

• Read an article about the PPC

• Write definitions for concepts related to the PPC

What does the Production Possibilities Curve tells us about the economy?

• How much income we can make as a country

• Shows how much an economy can produce given existing resources.​

• Can show the different choices that an economy faces.

• How much resources we're using per day as a country

What's the difference between Opportunity Costs and Trade offs? 

• Opportunity costs allow people to have two outcomes, but one of them is affected by the individual's decisions

• There's no difference

• Trade offs take away an outcome/choice/good from people

• Opportunity Costs and Trade offs are not related

What is scarcity?

• When there's no precipitation in a certain region due to dry conditions

• When a product is not properly used

• The idea that resources (such as time, money, land, labor, capital, entrepreneurship, and natural resources) are only available in limited quantities, whereas wants are unlimited.​

• When resources are unlimited and the demands are limited

What can be inferred from a Pareto Efficiency point in the PPC?

• It's impossible to move towards either side without harming the goods or services production.​

• Moving to either side would benefit all parties involved

• It's the lowest point in the graph

• It's the most dangerous point in the curve

What is an example of an Opportunity Cost?

• Adopting a new pet 

• Going to a party instead of studying for an exam

• Getting a new job after school

• Using all your resources to accomplish a goal

Why is point D inefficient in this scenario?

• Point D is on the Production Possibilities Curve

• Point D is not illustrated on the graph

• Resources at Point D are not being fully used in the goods and services production

• Point D is beyond the ability to produce goods and services at the time

What does efficiency mean in the PPC?

• The potential benefits that an individual or business misses out on when choosing one alternative over another.

• The idea that if you choose one thing, you are going to lose another.​

• Points where all resources available are employed in the production of goods and services. ​

• The idea that resources (such as time, money, land, labor, capital, entrepreneurship, and natural resources) are only available in limited quantities, whereas wants are unlimited.​

What are Trade offs?

• Points where all resources available are employed in the production of goods and services. ​

• Trading your problems for money

• The idea you can have everything you want

• The idea that if you choose one thing, you are going to lose another.​

Would meeting point E be possible in this scenario?

• Yes, the resources can grow over time

• No, because the point lies outside what the resources can produce at the time.

• Yes, point E represents an optimal state for the producer

• Maybe, the possibilities are infinite in this scenario