PPCs
Production Possibilities Curve
What is scarcity?
The basic problem in economics-where there are limitless wants and a scarcity of resources to meet those wants.
What are the 4 factors of production?
land
labor
capital
entrepreneurship
What is one assumption that economics makes in terms of individuals?
That individuals act to make themselves as well off as possible.
The head of Amazon and the wealthiest man on the planet.
Jeff Bezos
What are two pieces of information that we can find on a PPC?
How much of one product a company can produce in relationship to another product. Also-when a company is being efficient with their resources.
What is a shortage? Give a current day example.
A situation in which something is wanted or needed and cannot be obtained.
Silicon chips, ketchup, TP during the pandemic
What does it mean to maximize your utility?
we pay taxes, we get immunizations....anything we do to make us happier & "better off"
The CEO of Tesla, SpaceX, Paypal....
Elon Musk
What does it mean if a company's curve shifts out to the right?
That they gained new technology, more workers, new resources to increase their production.
What are the 3 basic questions that have to be answered when producing or meeting society's needs?
What to produce?
How to produce?
For whom are we producing?
What is a trade off? Give a personal example.
I chose to use my meal and movie tonight, so I lost my study hall time tonight. I will have to turn in my project late.
What does the concept "there is no free lunch" mean?
That everything costs.
The CEO of Nail Systems, International.
Fred Slack
What does it mean if a company's curve shifts in to the left?
That the company is not utilizing it's resources effectively.
Give two examples of needs.
Water, shelter, healthcare, etc.
What is opportunity cost?
The next best alternative of a choice.
For example, you spend time and money going to a movie, you cannot spend that time at home reading a book, and you can't spend the money on something else.
What is an assumption that we make about businesses?
That they will try to maximize profits.
The two creators of Apple.
Steve Wozniak and Steve Jobs
Point to two places on the PPC in which the company is utilizing it's resources.
See diagram!
Give two examples of wants.
A beachfront home in the tropics, a yacht, a new pair of Airpods.
What does the phrase "guns or butter" mean in economics?
A society has choices to make about what it produces. It can feed people or protect people. There are costs and trade offs to every choice.
What is price discrimination and how does it work?
When different people pay different prices for products. Ex: airline tickets
This CEO of a social media company started the idea by developing a program ranking how "hot or not" individual students were...
Who is Mark Zuckerberg? What is Facebook?