ch 1 presentation.notebook · ch 1 presentation.notebook 1 august 25, 2015 ch 1 section 3 link to...
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Ch 1 presentation.notebook
1
August 25, 2015
Ch 1 Section 3
link to PPC at classzone.com
On a clean piece of paper, answer the 2 questions on p. 19: Analyze Graphs
4 assumptions for PPCs: 1. resources are _______________ 2. all resources are _____________________________ 3. only 2 things can be __________________________ 4. _________________________ is fixed
define Production Possibilities Curve:
Ch 1 presentation.notebook
2
August 25, 2015
link to PPC in classzone.com
What do we learn from PPCs?
efficiency: resources are being used to produce maximum amount of g/s
underutilization: economic resources are not being used to their full potential(to the left of the PPC)
Discuss this:look around this classroom. 1. give examples of how we are being efficient2. give examples of underutilization3. why might producers elect to produce at less than efficient levels?
law of increasing opportunity costs:as production switches from one product to another, increasingly more resources are needed to increase the production of the second product,which causes opportunity costs to rise.(as we produce more of one product, we produce less of the second, so we have increased opportunity costs of producing the second product more guns means less butter so higher opp cost of producing more guns is less butter)
means
more guns less butter
after viewing, reveal the following:
Answer the 2 questions for Figure 1.5 on page 20 on the same piece of notebook paper.
Ch 1 presentation.notebook
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August 25, 2015
link to changing PPC
Discuss:What might cause a PPC to change?
Answer the 2 questions for for Figure 1.6 on page 22 on the same piece of notebook paper.
Answer on page 23:#7Creating a PPC (complete PPC handouts after reviewing the next few slides with white backgrounds)
Ch 1 presentation.notebook
4
August 25, 2015
Law of Increasing Opportunity Costs:
The proposition that opportunity cost (value of forgone production) increases as the quantity of a good produced increases.
It is illustrated in the PPC in a convex shapeflatter at the top and steeper at the bottom.
more guns means less butter so higher opp cost of producing more guns is less butter)
means
more guns less butter
(look at graph on p. 20 to illustrate)
Attachments
link to PPC in classzone.com
link to PPC at classzone.com
link to changing PPC