PPT-Scarcity, Opportunity Costs, and the Production Possibilities Curve

1 Scarcity 2 Scarcity Resources are scarce You cant always get what you want so everyone must make choices Choices can be dependent on money but also time Why do individuals have to make choices . Analyzing Production Possibilities. Section 3 Objectives, pp. 18-23. describe what a production possibilities curve is and how it is constructed. explain what economists learn from using production possibilities curves. for the Economist. 1. 2. 1. 2. 1. 2. What Shall We Give Up?. Opportunity cost. :. . The highest valued activity sacrificed . in making a choice.. Opportunity Cost. Opportunity costs are incurred when a . Graphing the Combinations of Production for Two Goods or Services. Shows all of the possible combinations of two goods or services that can be produced within a stated time period, given two very important assumptions:. Production and . Opportunity Cost. Texas Council on Economic Education. Laura Ewing. Kindergarten Social Studies Economics Strand TEKS. (6)  Economics. The student understands that basic human needs and wants are met in many ways. The student is expected to:. Tradeoffs in Production. The Production Possibilities Curve. Graph the following:. Televisions. Cars. 0. 16. 8. 14. 13. 10. 16. 6. 18. 2. 19. 0. Televisions. Cars. 0. 16. 19. Production Possibilities Curve. Trade-offs. Opportunity Costs. Trade-Offs. This is the decision making process that is occurring in your mind right now! . Am I going to pay attention to what Mr. . Nagelhout. is saying, or am I going to daydream? . An item that gratifies people’s needs and wants. Capital Good. An item that is used to produce other products. Production Possibilities Schedule. A table that shows the possible output combinations for an economy. This curve demonstrates the tradeoff of production possibilities between two products. . Y Axis. X Axis. Production Possibilities Curve. Each point on the curve represents what is possible in the production of the two products. Notice that the curve is inverse: adding to one side means less of the other . What Shall We Give Up?. Opportunity Cost. Opportunity cost. : . The highest valued activity sacrificed . in . making a choice. .. Opportunity costs are incurred when a . choice . is made.. They are subjective and vary across persons.. What Shall We Give Up?. Opportunity Cost. Opportunity cost. : . The highest valued . alternative that must be given up as a result of making . a choice. .. Opportunity costs are incurred when a . choice . This web quiz may appear as two pages on tablets and laptops.. I recommend that you view it as one page by clicking on the open book icon at the bottom of the page.. 1c – Production Possibilities. Chapter 1.1. Choices and Decision Making:. The study of economic begins with the idea that people cannot have everything they . need. and . want. .. Need. : . Anything that is necessary for survival.. This web quiz may appear as two pages on tablets and laptops.. I recommend that you view it as one page by clicking on the open book icon at the bottom of the page.. Construct . a production possibilities curve (PPC) when given appropriate data; what is the production possibilities curve (PPC) or production possibilities frontier (PPF)?; what does it show?. Chapter 1 Section 3. Mr. Henry. AP Economics. How a society decides what to produce using their limited resources because a society cannot have everything . How a society determines how to produce an item, whether using people or machines, or both.