Warm Up Explain what a production-possibilities curve shows.

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Warm Up Explain what a production-possibilities curve shows

Thursday, September 3, 2015 Objective: Students will be able to interpret a production- possibilities curve and explain the concepts of opportunity costs and scarcity. Purpose: Every decision that you make is based on opportunity cost. You can choose what your opportunity costs are based on the resources available.

Shifting Production Possibilities Curves One of the following must occur in order for the PPF to move beyond its current position/expand Improve technology Add more resources

What an Expanding PPF Shows Economic growth due to an increase in resources Allows the amounts of BOTH goods in any production combination to increase Increased productivity The importance of capital in an economy

Shifting Production Possibilities Curves One of the following must occur in order for the PPF to shrink inward Less technology Less resources