Production Possibilities Curve/Frontier
| ap_macro_1-4_production_possibilities_curve.ppt |
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Graph Review
This video is a reminder of how to graph, and what each axis represents. This class will involve a lot of graphs, so be sure to be familiar with this concept! |
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Individual PPC
A reminder/explanation of the Production Possibility Curve on the individual level. Use this to help jog your memory before we advance to society's PPC. |
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Opportunity Cost
This video explains the importance of opportunity costs -- one of the most important concepts in economics. Be able to: a) Explain what an opportunity cost is. b) Differentiate between 'direct' cost and 'indirect' cost. c) Give an example of an opportunity cost. |
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Society's PPC
What types of things are provided by the government for society, and how does the government decide which are most important? Be able to: a) Give an example of two items that may be on a society's PPC. b) Why are opportunity costs increasing rather than constant in most situations? c) If opportunity costs are increasing, would the PPC be represented with a straight line or a curved (bowed) line? d) What exactly does the PPC/PPF show? |
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PPC and Resource Changes
The only way for the PPC to shift (either to the right or to the left) is for resources to change in some way. This video explains the impact of resource changes on the PPC. Understand why: a) the entire PPC would shift outward/inward. b) only one part of the PPC would shift outward/inward. Be able to give an example of each scenario happening. |
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Khan Academy: Production Possibilities Frontier
For another look at the Production Possibilities Frontier, view this video from the Khan academy. In this, the instructor compares hunting (rabbits) to gathering (berries), and maximum possible production for each. Additional videos that continue this idea are linked below (Opportunity cost and Increasing Opportunity Cost). |