Lesson Plan
The Production Possibility Model
- I. Basics of the Model
- - scarcity of resources
- - the production possibility frontier graphically
- - opportunity costs
- - movements in the production possibility frontier
- II. What does the model show?
- - Scarcity
- - Technological efficiency and inefficiency
- - Opportunity cost
- - Law of diminishing returns/law of increasing (opportunity)
costs
- - How choices made today affect future production
possibilities
- III. Applications of the Model to the real world.
- - The Vicious Circle of Poverty
- - Immigration Laws
- - etc.