PPT-Scarcity, Opportunity Costs, and the Production Possibilities Curve

1 Scarcity 2 Scarcity Resources are scarce You cant always get what you want so everyone must make choices Choices can be dependent on money but also time Why do individuals have to make choices . University High School. Mr. Barnett. Cathenne. wants:. Kevin, Emilia, . Dayanna. . want:. Tessa wants:. Joseph wants to:. Courtney wants:. Stephanie, Catalina, . Chenxi. . want:. Michelle wants:. Timothy wants:. Ms. Sara Kirsch. Society has unlimited wants but unlimited resources. Accountants V. Economists . Accountants look at only . EXPLICIT COSTS.. Explicit costs are the traditional “out-of pocket costs” of decision making.. Graphing the Combinations of Production for Two Goods or Services. Shows all of the possible combinations of two goods or services that can be produced within a stated time period, given two very important assumptions:. Tradeoffs in Production. The Production Possibilities Curve. Graph the following:. Televisions. Cars. 0. 16. 8. 14. 13. 10. 16. 6. 18. 2. 19. 0. Televisions. Cars. 0. 16. 19. Production Possibilities Curve. Trade-offs. Opportunity Costs. Trade-Offs. This is the decision making process that is occurring in your mind right now! . Am I going to pay attention to what Mr. . Nagelhout. is saying, or am I going to daydream? . SCARCITY- The condition that results from society not having enough resources to produce all the things people would like to have.. What comes to mind when you think of something that is scarce?. ECONOMICS- the study of how people try to satisfy unlimited wants through the careful use of relatively scarce resources.. An item that gratifies people’s needs and wants. Capital Good. An item that is used to produce other products. Production Possibilities Schedule. A table that shows the possible output combinations for an economy. This curve demonstrates the tradeoff of production possibilities between two products. . Y Axis. X Axis. Production Possibilities Curve. Each point on the curve represents what is possible in the production of the two products. Notice that the curve is inverse: adding to one side means less of the other . What Shall We Give Up?. Opportunity Cost. Opportunity cost. : . The highest valued . alternative that must be given up as a result of making . a choice. .. Opportunity costs are incurred when a . choice . Unit 1 Lesson 2. What are some examples of scarcity?. SCARCITY. Scarcity.  is a condition where there is less of something available than at least some people would like to have if they could have them at no cost to themselves. Because the total quantity of goods and services that people would like to have always far exceeds the amount which available economic resources are capable of producing in all known human societies, people must constantly make choices about which desires to satisfy first and which to leave less than fully satisfied for the time being. That is, they must constantly decide how best to allocate (apportion or distribute) the scarce resources available to them among the various alternative uses to which they can be put. Thus, scarcity is the fundamental condition that gives rise to the patterns of choosing behavior whose study constitutes the main focus of the academic discipline of economics.. This web quiz may appear as two pages on tablets and laptops.. I recommend that you view it as one page by clicking on the open book icon at the bottom of the page.. 1c – Production Possibilities. Chapter 1.1. Choices and Decision Making:. The study of economic begins with the idea that people cannot have everything they . need. and . want. .. Need. : . Anything that is necessary for survival.. This web quiz may appear as two pages on tablets and laptops.. I recommend that you view it as one page by clicking on the open book icon at the bottom of the page.. Construct . a production possibilities curve (PPC) when given appropriate data; what is the production possibilities curve (PPC) or production possibilities frontier (PPF)?; what does it show?. Chapter 1 Section 3. Mr. Henry. AP Economics. How a society decides what to produce using their limited resources because a society cannot have everything . How a society determines how to produce an item, whether using people or machines, or both.