AP Economics – 8/29/19
I. Bellwork: Follow the directions below:
A. Use a diagram (See yesterday’s diagram) to illustrate the trade-offs and opportunity cost below:
- If you had up to $100 to spend on only one product or service, make a list of at least 4 possible products or services you would consider purchasing with the $100.
- Now narrow the list to the top two choices
- Now list the item or service you would purchase.
- Under the diagram describe some of the things you would sacrifice (opportunity cost) related to the next best product or service you gave up?
II. Objectives – SWD:
- how scarcity and opportunity costs are present in economic decisions by constructing a production possibilities frontier graph.
- the ability to make decisions involving trade-offs and opportunity costs explaining the factors which influence their decision in relation to those economic concepts
III. Identifying Trade-offs and Opportunity Costs
B. Production Possibilities Frontier
IV. Classwork/Homework
- Copy the Schedule Below
- Label and plot the Production Possibility Frontier Curve
- Write & Answer the two questions below
- Describe 3 situations which would cause production to be inside of the curve.
- Describe what a point outside the curve means.
Military Goods (Guns) | 5000 | 4800 | 4500 | 4000 | 3300 | 2000 | 0 |
Consumer Goods (Butter) | 0 | 1000 | 2000 | 3000 | 4000 | 5000 | 6000 |
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