Unit One: Learning Objectives:
North Clackamas School District Social
Studies Priority Standards:
• Econ 53. Describe characteristics of
command, market, traditional, and
mixed economies and how they affect
jobs and standards of living.
• Econ 59. Demonstrate the skills and
dispositions needed to be a critical
consumer of information.
Lesson Three: Daily Learning Target
I Can define and explain in writing the
following key Economic concepts:
Production Possibilities Curve/Graph
Efficiency
Underutilization
We will be using Cornell Note Taking
Format Today!
Mr. Kirby’s Class: “The world of overused quotes and clichés!
“There Aint No Such Thing
as a Free Lunch!”
Take one step at a
time to success in
Economics!
0
Producers have options. Should a
farmer grow corn or broccoli?
A Production Possibilities Graph
A Production Possibilities Graph shows
alternative ways of using a country’s or
producer’s resources.
If a farmer uses more of his land to grow
corn, he has less land for broccoli.
Every decision has its cost.
What is the cost of producing more
automobiles?
Number of Buses [ millions]
10
9
8
7
6
5
4
3
2
1
0
A
C
D
E
B
2 4 6 8 1012 14 16 18 202224 26 28 30 32 34 36 38 40 42
Number of cars [Millions]
6
5
4
3
2
1
0
1
2
3
Efficiency
An economy is efficient when it uses
resources in such a way as to maximize
production.
Businesses
Why is it important to be efficient?
Look at the graph. Where is efficiency
occurring?
Underutilization
Underutilization is the opposite of
efficiency.
Underutilization occurs when an
economy uses fewer resources than it
is capable of using.
Why do producers avoid the
underutilization of resources?
Look at the graph. Where is
underutilization occurring?
The Production Possibilities
Frontier
The line on the graph that shows the
maximum possible production is called the
production possibilities frontier.
At the frontier, efficiency is occurring.
However, new technology can shift the
frontier. Think about it!
Look at the graph. Where is the
production possibilities frontier?
Don’t Forget Scarcity!
A producer cannot produce everything.
A producer must make choices.
Remember: It’s all about scarcity. Our
resources are limited but our wants and
desires are unlimited.
It’s all about corn or broccoli.
We can’t have it all.
100
50
20
40
.
in table form
PIZZA
(hundred thousands)
Robots
(in thousands)
0
1
2
3
4
10
9
7
4
0
(thousands)
Robots
graphical form
Pizzas (hundred thousands)
Robots (thousands)
Q 14
13
12
11
10
9
8
7
6
5
4
3
2
1
The ability to produce a
larger total output - a rightward
shift of the production
possibilities curve caused by...
1
2
3
4
5
6
Pizzas (hundred thousands)
7
8
Q
More of either or both is possible.
Robots (thousands)
Q 14
13
12
11
10
9
8
7
6
5
4
3
2
1
1. Increase in resources -
2. Better resource quality -
3. Technological advances -
1
2
3
4
5
6
7
8
Pizzas (hundred thousands)
Q
Use the following information to create a PPC for McDonalds during
Lunch hour. Biff and Skip, working at maximum efficiency can produce
the following two products:
Big Macs
Large Fries
0
25
5
15
10
5
15
0
1. Plot a point showing
Underutilization.
2. Plot a point showing
future production
possibilities.
Problem Solving Activity #3: Create two PPCs
20 Points
A. For Under Armor:
B. For Starbucks
Football cleats 25/0
Grande Mocha w/whip
10/0
Socks 100/0
Black Coffee
(house blend) 18/0
Bonus Production Possibility
Graph
Create a production possibility Graph for two
Products of your choosing:
1. Create the chart
2. Include a table of data
3. Put a title on your design
Partner Practice-Econ Book
Complete the following with a partner:
Answer questions 1-9 on page 20.
Turn your answers into me.
One paper per group of two.
After you complete the Quiz:
“Circular Flow Model of a Market Economy”
Poster-Problem Solving activity #4
 Create a circular flow model poster using
page 40 (figure 2.3)
 Draw and Label all flow as seen in figure
2.3
 Draw three pictures or icons for:
Household, government and firms.
 Define the following terms on your chart







Household
Firm
Government
Factor Market
Product Market
Monetary Flow
Physical Flow
?
?
?
?
?
 Include a title-color and shade poster
“Circular Flow” Poster
Rubric
EXCEEDING
5
Excellent- final
draft,” quality.
Very creative, all
components
present including
colored/shaded
pictures (3) ,
detailed
information. Flow
is correct and
definitions
detailed and
complete.
“Futures
Possibilities
realized!”
PROFICIENT
4
Good- final draft,”
quality. Creative, all
components present
including colored/shaded
pictures (3) , detailed
information. Flow is
correct and definitions
complete.
“At the Frontier!”
Efficiently run
business!
.
PROGRESSING
3.5
Good - final draft
qualityall components present
including pictures (3) ,.
“JUST THE FACTS MAN!
EMERGING
3
O.K.-A draft-all
components present
including pictures (3) ,
information.
“Bare minimum’
“Barely efficient”
Much work to be done
to make this business
work!
“Underutilization”
Of talent and
production
capabilities!