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  • Form 4 Economics Session 2

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    Delisha Jones
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    The document discusses the economic concept of a production possibility frontier (PPF). It defines a PPF as a graph showing the combinations of two goods an economy can produce with fixed resources and technology. It lists the assumptions of a PPF and provides an example to draw a PPF using data on the production of snowboards and skies. The document also explains how to identify efficient, inefficient, and unattainable points on a PPF and how the PPF can be used to illustrate the concepts of scarcity, choice, and opportunity cost.

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    The document discusses the economic concept of a production possibility frontier (PPF). It defines a PPF as a graph showing the combinations of two goods an economy can produce with fixed resources and technology. It lists the assumptions of a PPF and provides an example to draw a PPF using data on the production of snowboards and skies. The document also explains how to identify efficient, inefficient, and unattainable points on a PPF and how the PPF can be used to illustrate the concepts of scarcity, choice, and opportunity cost.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    2 views10 pages

    Form 4 Economics Session 2

    Uploaded by

    Delisha Jones
    The document discusses the economic concept of a production possibility frontier (PPF). It defines a PPF as a graph showing the combinations of two goods an economy can produce with fixed resources and technology. It lists the assumptions of a PPF and provides an example to draw a PPF using data on the production of snowboards and skies. The document also explains how to identify efficient, inefficient, and unattainable points on a PPF and how the PPF can be used to illustrate the concepts of scarcity, choice, and opportunity cost.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 10

    Form 4

    Economics
    SESSION 2
    Review
    THREE ECONOMIC CONCEPTS: Scarcity, Choice and Opportunity Cost
    Learning Objectives
    1. Define the term Production Possibility Frontier (PPF)
    2. List the Assumptions of the PPF
    3. Derive a PPF
    4. Identify points on the PPF
    PRODUCTION POSSIBILITY FRONTIER
    A graph showing the combination of two goods that an economy can produce using fixed resources.

    ASSUMPTIONS:

    1. Resources are fixed


    2. Technology is fixed
    3. The economy can only produce two goods.
    DRAW A PPF
    Using the information below draw a PPF. Snowboard on y axis. Skies on the x axis

    Combinations Snow boards ‘000 Skies ‘000

    A 50 0

    B 40 20

    C 25 40

    D 0 60
    Identify: Efficient, Inefficient and Unattainable points
    Snowboards

    Skies
    Explain scarcity choice and opportunity cost using
    the PPF
    Next class
    SHIFTS OF PPF

    SHAPES OF PPF

    FACTORS AFFECTING ECONOMIC DECISIONS OF HOUSEHOLDS AND FIRMS.


    Home Work

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