Topic 4: Production Possibilities
Lesson Objectives
- Use the production possibilities frontier to illustrate scarcity and opportunity cost.
- Understand how to identify efficiency and inefficiency using the production possibilities frontier.
- How economic growth changes the production possibilities frontier
Textbook reading
- Chapter 2: Introduction and 2-1e Our Second Model: The Production Possibilities Frontier
Non-textbook materials
- Watch 1funkyteacher on production possibilities, scarcity, and increasing costs (9:11)
- Watch 1funkyteacher on production possibilities, efficiency and growth (4:31). These videos are a great overview of the topics.
- Watch Kahn on opportunity costs (5:49)
Videos
Potential Output
Production Function and Productivity
Marginal Products