Production Possibilities Graphs
Download
Report
Transcript Production Possibilities Graphs
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!