frontpage: nnign 1 last word: ch 1 review due and quiz - tuesday tattoo and body-modification artist...

FrontPage: NNIGN

Last Word: Ch 1 Review due and Quiz - Tuesday

Tattoo and body-modification artist Kala Kaiwi, who holds the world record

for having the most stretched earlobes on the planet. The holes in his ears are said to measure 4.3” in diameter and took him around 16

years to stretch

Tattoo and body-modification artists descended on Caracas, Venezuela, last week for a four-day festival aimed at spreading awareness of the extreme art forms.

Maria Jose Cristerna, also known as Vampire Woman, was one of the celebrities to attend the event.

Production PossibilitiesOr…guns vs. butter

What are the possibilities?

When we talked about opportunity cost, we learned that for each choice, there is a trade-off We must give something up to get/do something

else. Economists have developed models to show

how this type of thinking works in real-life We can represent these choices and trade-off

visually, in a graph Useful for businesses and governments, but also

for individual decision-making

Production Possibilities Frontier (PPF)

A production possibilities frontier (curve) is a graph showing the maximum number of goods or services that can be produced by using limited resources.

For example: what will a nation decide to produce?, “guns or butter”

There are several assumptions that go along with this graph that we need to keep in mind…1. Resources are fixed – no more capital, land, labor can be

added to increase production2. All resources are fully utilized3. Only 2 products can be produced (or graphed)4. Technology is fixed – no new processes can be factored in

to increase production

Guns vs. Butter

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https://www.khanacademy.org/economics-finance-domain/microeconomics/choices-opp-cost-tutorial/production-possibilities/v/production-possibilities-frontier

FrontPage: Have PPF sheet on your desk.

Last Word: Ch 1 Review due (Online AND Paper) and Ch 1 quiz Tuesday

Best Tip Ever Best Pet Halloween Costume Ever

Studying vs free time

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What points would be considered “underutilization”?What points would be considered “efficient”?

Laptops and LCDs

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Cars and milk

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Production possibilities Frontier (or… PPF, or… PPC)

What could actually cause a “shift” in the PPC – to the right (“out”)? Laptops and LCD TVs?

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Production possibilities Frontier (or… PPF, or… PPC)

What could cause a shift to the left (“in”)? Steel and Food

What happens if the change only affects one good?

Law of Increasing opportunity cost

Why is the opportunity cost of doing one more thing instead of the other NOT always a consistent number in a PPC? The line usually curves, it is not straight.

Why?

https://www.khanacademy.org/economics-finance-domain/microeconomics/choices-opp-cost-tutorial/production-possibilities/v/increasing-opportunity-cost