Production Possibilities
Objective: What is the production possibilities model? How can we use it to analyze choices made by
individuals and societies? How can we use the model to show key economic concepts?
Before watching the PPC videos, please define with examples the 4 Factors of Production (info in your
textbook. Which is the most important for economic growth?
3 PPC Videos (These videos will introduce you to the Production Possibilities Model. Note that you will also see
this referred to as the Production Possibilities Curve (PPC) or Production Possibilities Frontier (PPF). These all
mean the same thing. Draw the Production Possibilities model in your notes with detailed explanations so that
you understand what the model means.
An Individual’s PPC
A Society's PPC
PPC & Resource changes
Other good PPC videos:
No Bull PPC review
PPC in 60 seconds
PPC Example: How to spend
time - math grade or econ
grade (from first video)
Definition:
Production Possibilities
Assumes:
How does the model show
scarcity?
Production Possibilities
How does the model show
inefficiency?
How does model show choice
and trade-offs?
Society’s PPC - Military
Goods vs. Civilian Goods
(from second video)
How does model show
increasing opportunity costs?
How does model show
marginal analysis?
What is the best choice?
How does model show an
increase in resources? A
decrease in resources?
Production Possibilities
Recap:
1. How can you use the production possibilities model to illustrate a choice you have made recently?
2. How can you use the production possibilities model to illustrate a choice our nation is facing?
3. How does the production possibilities model show the following important economic concepts? Scarcity,
choice, trade-offs, resources, marginal thinking, efficiency, growth, opportunity cost, increasing opportunity costs