o Students will learn to explain how production ... ?· OBJECTIVES: Chapter 1:3 o Students will learn…

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  • OBJECTIVES: Chapter 1:3

    o Students will learn to explain how

    production possibilities curves

    show efficiency, growth, and cost.

    o Students will explain why a

    countrys production possibilities

    depend on its resources and

    technology.

  • Luk_14:28 For which of you,

    intending to build a tower, sitteth

    not down first, and counteth the

    cost, whether he have sufficient to

    finish it?

  • Chapter 1:3

  • A production possibility curve is a graph that shows alternative ways to use an economys productive resources.

    Production Possibilities Frontier is a line on a production possibilities curve that shows the maximum possible output an economy can produce.

  • Efficiency, Growth, and Cost:

    Efficiency is the use of

    resources in such a way

    as to maximize the output

    of goods and services.

    Under utilization: or the

    use of fewer resources

    than the economy is

    capable of using.

  • Efficiency, Growth, and Cost:

    GROWTH: When an

    economy grows,

    economists say that the

    production possibilities

    curve has Shifted to the

    right.

  • Efficiency, Growth, and Cost: Costs: Economists explain

    these increasingly expensive trade offs, through the law of increasing costs, this principle states that as production shifts for making one item to another, more and more resources are necessary to increase production of the second item.

    Therefore the opportunity cost increases.

  • Efficiency, Growth, and Cost: Technology and

    Education: Both human and physical capital reflect a vital ingredient of economic growth technology.

    Technology is the process used to create goods and services.

    Technology is one of the factors that can increase a nations efficiency.

  • Discussion Activity

    Gather into groups of four and discuss and

    explain what technologies need to be

    updated or upgraded and explain the

    reasons why you chose what needs to be

    updated.

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