In this lesson, our instructor Jibin Park gives an introduction on production possibilities frontier. He discusses the production possibilities frontier, increasing opportunity cost, and constant opportunity cost.
A Production Possibilities Frontier lists the alternative combinations of choices given limited resources, which is positiveeconomics.
The best point of efficiency is a normative issue that depends on different sets of values.
For most products, the law of increasing opportunity costs apply which means more and more resources are required to produce the same amount of goods.
Some PPF graphs have a constant opportunity cost in which the same amount of resources are required to produce an additional amount of goods.
The Production Possibilities Graph shows the opportunity cost of deciding to produce one product over another.
Production Possibilities Frontier
Lecture Slides are screen-captured images of important points in the lecture. Students can download and print out these lecture slide images to do practice problems as well as take notes while watching the lecture.
This book created a 5-step plan to help you study more effectively, use your preparation time wisely, and get your best score. This book includes two full-length practice exams modeled on the real test, all the terms and concepts you need to know to get your best score, and your choice of three customized study schedules.
This book includes an in-depth preparation for both AP economics exams. It features two full-length practice tests, one in Microeconomics and one in Macroeconomics, and all test questions answered and explained. It also features a detailed review of all test topics, which include: supply and demand, theory of consumer choice, economics in the public sector, costs, perfect and imperfect competition, monopolies, labor resources, game theory, the national income and gross domestic product, inflation and unemployment, fiscal policy, money and banking, monetary policy, economic growth, international trade and exchange, interest rate determination, and the market for loanable funds.