Transcript Slides - High School Economics - Council for Economic Education

LESSON 1 PRODUCTION POSSIBILITIES AND OPPORTUNITY COST
Technologia
• Imagine you are a citizen of Technologia, a
country that produces two goods:
– Smartphones
– Tablet computers
• What do these two goods have in common?
– Both digital technology
– Both wireless
– Both have touch screens
1-1
HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 1 PRODUCTION POSSIBILITIES AND OPPORTUNITY COST
Coltan
• Coltan is a heat-resistant ore that
can hold a strong electrical charge
and is used in making the
capacitors needed to produce
touch screens for both
smartphones and tablet computers.
• Coltan is rare. Almost all the
deposits are found in African
countries such as the Democratic
Republic of Congo.
– Source: University of Waterloo Earth Sciences
Museum (http://www.uwaterloo.ca/earthsciences-museum)
1-2
HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 1 PRODUCTION POSSIBILITIES AND OPPORTUNITY COST
Technologia’s PPF
• Simulation of smartphone/tablet
production
• Five students per team; each person can
handle only one card at a time.
– Pull card from “coltan” box.
– Turn card to appropriate side.
– Pass to next person.
– Place in box with appropriate label.
– Repeat until coltan runs out.
1-3
HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 1 PRODUCTION POSSIBILITIES AND OPPORTUNITY COST
Technologia’s PPF Simulation
1-4
HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 1 PRODUCTION POSSIBILITIES AND OPPORTUNITY COST
Technologia’s PPF Simulation
First person
pulls a card and
turns it to
“Tablet”
1-5
HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 1 PRODUCTION POSSIBILITIES AND OPPORTUNITY COST
Technologia’s PPF Simulation
Passes the
card down
the line …
1-6
HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 1 PRODUCTION POSSIBILITIES AND OPPORTUNITY COST
TABLE 1.1: Smartphone and Tablet Computer Production Possibilities
Round
(point)
Number of
smartphones
Number of tablet
computers
1 (A)
2 (B)
3 (C)
4 (D)
5 (E)
6 (F)
1-7
HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 1 PRODUCTION POSSIBILITIES AND OPPORTUNITY COST
Technologia’s PPF
30
Smartphones
25
20
15
10
5
0
0
5
10
15
20
25
30
Tablets
1-8
HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 1 PRODUCTION POSSIBILITIES AND OPPORTUNITY COST
Technologia’s PPF
30
• Increase in
the amount of
coltan
available for
production
Smartphones
25
20
15
10
5
0
0
5
10
15
20
Tablets
25
30
• PPF shifts
“out,” away
from the
origin
1-9
HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 1 PRODUCTION POSSIBILITIES AND OPPORTUNITY COST
Technologia’s PPF
• Increase in
productivity for
smartphones
60
Smartphones
50
40
• One unit of
coltan can
produce two
smartphones
30
20
10
0
0
10
20
30
40
50
Tablets
60
• PPF has shifted
outward, away
from origin
1-10
HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY