Lesson 1 Production Possibilities And Opportunity Cost
Lesson 1Production Possibilities andOpportunity CostBK-CEE-ECONOMICS-131302.indb 113-06-2014 03:23:20
Lesson 1Production Possibilities and Opportunity CostLESSON DESCRIPTIONThis lesson introduces students to production possibilities analysis, the productionpossibilities frontier (PPF) and to the conceptof opportunity cost. Students participate inseveral short production simulations andcreate their own PPF curves.INTRODUCTIONMick Jagger sang, “You can’t always getwhat you want. . . .” This is true for individuals and for nations—because the resourcesneeded to produce the goods and servicesthat we desire are scarce. Production possibilities represent an analysis of the alternative combinations of two goods that can beproduced with a set of scarce resources usingavailable technology in a given time period.This analysis produces a graphic representation, the production possibilities frontier(PPF), which illustrates the trade-offsinvolved in making decisions about producing goods.The PPF shows society’s maximum production output of one good given the production output of another good. This trade-offcan be seen in the classic “guns vs. butter”example: All societies must decide how manyweapons to produce and how much foodproduction to sacrifice in order to producethe guns and vice versa. The various combinations of goods (i.e., “guns” or “butter”) thatcan be produced can be plotted as points on agraph and, when these points are connected,the resultant curve is the PPF. Productionpossibilities analysis is fundamental toeconomics.Economists describe the true cost ofsomething as what you must give up in2order to get that thing. This can be seenin the concept of opportunity cost, whichis the value of the next best alternativenot chosen. Limited resources force us tochoose between alternatives in order tosatisfy our wants. This is the essence ofopportunity cost—choosing to do one thingprevents us from having the opportunityto do another. The PPF can be used tocalculate the opportunity cost of variousproduction decisions. For example, given aset of scarce resources, in order to produceadditional “butter,” a society has to give upthe opportunity to produce some “guns.”Production possibilities analysis canalso be used to determine how efficientlysociety has utilized its scare resources.Every point along the PPF represents aproduction decision that uses all available resources. This is said to be efficientbecause society’s scarce resources are beingfully employed in producing some combination of guns and butter. The PPF alsorepresents a limit—combinations that fallbeyond the frontier are not possible. On theother hand, any combination of guns andbutter that society chooses to produce thatfall inside the frontier are said to beinefficient because society is underutilizing its resources.COMPELLING QUESTIONWhy can’t even developed countries produceeverything their citizens want?CONCEPTSProduction possibilities frontier (PPF)Opportunity costResourcesHIGH SCHOOL ECONOMICS 3rd EDITION COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NYBK-CEE-ECONOMICS-131302.indb 213-06-2014 03:23:20
Production Possibilities and Opportunity Cost Lesson 1OBJECTIVESStudents will be able to: Create production possibility frontiers(PPFs) using data from a simulation. Explain what economists mean byefficiency, using an example from asimulation. Calculate the opportunity cost of aproduction decision. Graph a production possibilities curvefrom a table. Use the PPF model to illustrate theconcepts of trade-off and opportunity cost.CONTENT STANDARDSVoluntary National Content Standardsin Economics Standard 1: Choices made by individuals,firms, or government officials areconstrained by the resources to whichthey have access. Standard 3: Different methods can beused to allocate goods and services.People acting individually or collectivelymust choose which methods to use toallocate different kinds of goods andservices. Standard 15: Investment in factories,machinery, new technology, and in thehealth, education, and training of peoplestimulates economic growth and can raisefuture standards of living. CCSS.Math.Content.HSF-IF.C.7: Graphfunctions expressed symbolically andshow key features of the graph, by handin simple cases and using technology formore complicated cases.TIME REQUIRED60–90 minutes. Procedures 1–27, 45 minuteson the first day; procedures 28–39, 45 minutes on the second day.MATERIALS Slides 1.1–1.10 Activity 1.1, one copy per student Activity 1.2; photocopy sheet twice oncard stock, back-to-back, and cut apartto make 30 two-sided smartphone andtablet computer cards Three labeled boxes, approximately shoebox size or slightly larger Activity 1.3, one copy per student Activity 1.4, one set (16 rulers, 16protractors) per student (for optionalgroup version, one set per four students) Scissors, one per student (for optionalgroup version, one per four students) “Protractors and Rulers” Excel workbook(available online with slides) Document camera Tape, two 4-inch strips per student orconvenient access to a tape dispenser (foroptional group version, two strips perfour students) “ 2” signsCommon Core State Standards CCSS.Math.Content.HSF-IF.B.4: Fora function that models a relationshipbetween two quantities, interpret keyfeatures of graphs and tables in termsof the quantities, and sketch graphsshowing key features given a verbaldescription of the relationship. Keyfeatures include: intercepts; intervalswhere the function is increasing,decreasing, positive, or negative; relativemaximums and minimums; symmetries;end behavior; and periodicity.PROCEDURESDay One1.Prepare in advance 30 cards, each withone smartphone on one side and one tabletcomputer on the other. Use Activity 1.3provided with this lesson and run eachsheet back-to-back.2. Introduce the lesson by asking studentswhether they would like a smartphoneor a tablet computer.HIGH SCHOOL ECONOMICS 3rd EDITION COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NYBK-CEE-ECONOMICS-131302.indb 3313-06-2014 03:23:20
Lesson 1 Production Possibilities and Opportunity CostAnswers will vary.Ask them why they think that everyone can’t have a smartphone or a tabletcomputer.They are likely to say they have limitedincome.Tell students that countries are like individuals—countries can’t produce enough ofeither smartphones or tablet computers tosatisfy everyone. Ask: Why can’t countriesjust produce enough smartphones andtablets to satisfy everybody?6. Show Slide 1.2. Explain to students thatone resource needed to produce bothsmartphones and tablet computers isthe rare earth mineral coltan. Coltanis a heat-resistant ore that can hold astrong electrical charge; it is used tomake capacitors for touch screens insmartphones and tablets. Coltan is rareand almost all deposits of it are found inAfrican countries such as the DemocraticRepublic of Congo.1 Have students readthe rest of the introduction.7.Three boxes will be used in the simulation. Label one “coltan.” Label the second“smartphones,” and label the third “tabletcomputers.” Place the coltan box front-andcenter in the classroom, and place each ofthe other boxes at least 10 feet apart oneither side of the coltan box.8.Show Slides 1.3–1.6 as you describe thesimulation (described in step 3 of Activity1.1). Tell students that coltan is very scarceand only 20 pieces are available in thecountry to use in smartphones or tabletcomputers. Place 20 of the prepared smartphone/tablet cards in the coltan box.They should say that a country will nothave all the resources necessary toproduce enough for everybody.Point out that countries face a scarcity ofresources and must choose to use thoseresources to produce smartphones ortablet computers.3. Tell students that they will now participate in a simulation that will demonstrate the trade-offs a country mustmake. They will be creating a diagramknown as a production possibilityfrontier or PPF. A PPF shows all thecombinations of goods that a country canproduce using its available resources andtechnology.4. Ask students to imagine that they arethe citizens of a country called Technologia, which produces two goods:smartphones and tablet computers. Tellstudents they will be producing the PPFfor these two goods.5. Distribute Activity 1.1 and show Slide1.1. After students have read the firstparagraph of the introduction, ask themwhat these two goods have in common.Answers will vary but might include thatboth are examples of technology, both arewireless, both have touch screens.49. Tell students you are now looking foranother resource—labor. For Round 1,select 10 students to participate in theproduction of smartphones or tablet computers. Place five students on one side ofthe coltan box and five students on theother. Have students stand arm’s-lengthapart.10. Tell students they will be participatingin a simulation on how coltan resourcesare used to produce tablets or smartphones. Note that there are 20 cards in thecoltan box to be used in the production ofsmartphones or tablets. They will use thecards to produce one smartphone or onetablet, depending on which team they areon. Once the round begins, students willSource: University of Waterloo Earth Sciences Museum IGH SCHOOL ECONOMICS 3rd EDITION COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NYBK-CEE-ECONOMICS-131302.indb 413-06-2014 03:23:20
Production Possibilities and Opportunity Cost Lesson 1make as many of their goods as possible until the coltan is exhausted. Goodsare produced by turning the card to theappropriate good (smartphone or tablet)and passing the card to the next personin line. Students can handle only onecard at a time. The team with the mostgoods in their box at the end of the roundwill be declared the winners. Encouragestudents to cheer for the teams.11. Build excitement by making this about competition: Who can produce the most? At theend of the first round, have students enterthe results in Activity 1.1, Table 1.1. Use aninteractive whiteboard or document camerato project a copy of Table 1.1 (Slide 1.7);work with students to enter results.12. For Round 2, tell students you want toproduce more smartphones. Take two students from the tablet computer productionline and move them to the smartphoneline. Replace the coltan cards in the coltanbox. Remind students that they can holdonly one coltan card at a time. ConductRound 2. As before, project a copy of Table1.1 and enter the results. (Note: Ideally,more smartphones and fewer tablet computers will have been produced, becausethe three students will have to run backand forth a bit. Even if this does not happen, another point will have been generated for the PPF—and, preferably, it willbe different than that of the first round.)13. For Round 3, tell students you want toproduce even more smartphones. Taketwo more students from the productionline for tablet computers and move themto the smartphone line. Return coltanslips to the coltan box. Remind studentsthat they can hold only one coltan cardat a time. Conduct Round 3. Again project a copy of Table 1.1 and enter results.(Note: Ideally, with just one studentproducing tablet computers, even moresmartphones should be produced. Even ifthis does not happen, another point willhave been generated for the PPF.)14. Have students enter and plot results, using the blank axes in Activity 1.1.15. Ask students: What is the maximum number of tablets Technologia could produce?20Ask students to plot the results ifTechnologia had produced only tablets.(20, 0)Ask students: What is the maximumnumber of smartphones Technologiacould produce?20Ask students to plot the results ifTechnologia had decided to produce onlysmartphones.(0, 20)16. Tell students to connect the points theyhave graphed, and show them Slide 1.8.It should be a straight line from (0,20) to(20,0).Tell students the PPF they have graphedillustrates the trade-offs that countries mustmake when producing goods.17. Tell students that, to an economist, thetrue cost of anything is more than themonetary price (or “price tag”) of thegood or service. Economists focus on opportunity costs when assigning truecosts. The opportunity cost is the cost ofthe next best choice, or what we give upto get something. Show students this inthe graph by moving along the PPF. Forexample, to increase from 0 tablets to1 tablet, smartphones must be givenup. Ask: What is the opportunity costto Technologia of producing one moretablet—that is, what had to be given up?One smart phoneHIGH SCHOOL ECONOMICS 3rd EDITION COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NYBK-CEE-ECONOMICS-131302.indb 5513-06-2014 03:23:21
Lesson 1 Production Possibilities and Opportunity CostAsk: If a second tablet was wanted, whatwould be given up?Ask: What would the result be if Technologia decided to produce only tablets?One smart phone(30, 0)Emphasize that, because the opportunitycost is constant in this example, the PPFis a straight line. Ask: What is the opportunity cost to Technologia of productionof a smartphone?Have them plot these points. Ask: Whatis the maximum number of smartphonesTechnologia could produce?One smartphone one tablet; one tablet one smartphoneAsk students to plot the results ifTechnologia decided to produce onlysmartphones.18. Demonstrate this using the smartphone/tablet cards. Hold up the smartphoneside and tell students that instead ofproducing a smartphone with the coltan,Technologia chose to produce a tablet:therefore, Technologia lost the opportunity to produce that smartphone.19. Tell students that the first PPF forsmartphones/tablets represents Technologia’s potential output at this time.Eventually, changes may cause this PPFto shift. Ask students to think of somechanges that might cause the PPF toshift outward (away from the origin) representing growth in economy.Increase in resources, increase in productivity, increase in technology20. Gather all 20 cards and add the remaining 10 cards to the box (total of 30 cards).Ask students: What is represented byputting 30 coltan cards in the box?An increase in resourcesChoose 10 students not involved thus farand explain that you are going to playanother three rounds.21. Conduct three rounds, as was done inprocedures 10–14.22. Ask students: What is the maximum number of tablets Technologia could produce?30630(0, 30)23. Show results on Slide 1.9. Point out thatbecause resources have increased, morephones and tablets can beproduced.24. Finally, tell students that productiontechnology has improved to the pointwhere touch screens in smartphonesrequire only half the coltan they did before. Place a large “ 2” sign on thesmartphone box.25. Tell students that they probably don’tneed to do another simulation to predictwhat will happen to the PPF if the country has 30 units of coltan and each unitwill produce two smartphones. Notethat the production of a tablet computerstill requires a full unit of coltan.Have students add this new PPF ontheir graph.The PPF should go from (0,60) to (30,0).Show Slide 1.10 to verify that studentshave plotted the points correctly.26. Ask: What has happened to the opportunity cost of a tablet?The opportunity cost has increased totwo smartphones for each tablet computerproduced.HIGH SCHOOL ECONOMICS 3rd EDITION COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NYBK-CEE-ECONOMICS-131302.indb 613-06-2014 03:23:21
Production Possibilities and Opportunity Cost Lesson 1What resources are used in the production of both goods?27. Ask students these questions to reviewthe first part of the lesson:a. Why do countries face a trade-offbetween goods such as tablet computers and smartphones?The resources needed to produce thegoods, like coltan, are scarce.b.In the first PPF graph, what was theopportunity cost of a smartphone?One tablet computerc.In the first PPF graph, did the opportunity cost of a smartphone change?No, it was always the same, onetablet computer.d. What can cause the PPF to shiftoutward?More resources or better technologyDay Two28. Remind students of the results of thefirst day’s activities. Ask students toreview the definitions of productionpossibilities and opportunity cost.29. Tell students that the example theyexplored in the last lesson used a common resource: the mineral coltan. Often,however, when countries or individuals choose between combinations of twogoods, the resources needed to produceone good are different from those neededto produce the other. Ask: Consider theproduction of two goods—pizzas andflat-screen TVs—What are some of theresources used in making pizzas?Labor, wheat, cheese, tomatoes, pizza ovensWhat about flat-screen TVs?Labor, digital components, electric circuits, factoriesLabor30. Distribute copies of Activity 1.3. Tellstudents they will participate in a simulation of increasing opportunity cost—amore real-world example. Describe thesimulation as the production of twogoods: rulers and protractors.231. Optional Group Method: For maximumparticipation, each student should havepaper strips, rectangles, pen, tape, andscissors. If materials are scarce, formgroups of four students, with studentstaking turns to “produce” over the fourrounds. The procedures below assumeeach student has materials.32. Distribute one set of Activity 1.4 toeach student (one copy of ruler sheet,two copies of protractor sheet). Beforethe simulation begins, have themuse scissors to cut along the lines;students should have 16 strips and16 rectangles to use in the four roundsof the simulation.33. Explain that rulers are produced using3.5-inch 1-inch strips of paper thatstudents will cut from Activity 1.4. Aruler is produced by making five verticalmarks (see example in Activity 1.3).34. Explain that protractors are produced byusing scissors to cut semicircles from the3.5-inch 2-inch rectangles in Activity1.4 and drawing five marks around theedge of the semicircle (see example inActivity 1.3).35. For each round, students begin with fourstrips, four rectangles, a pen, a roll oftape, and a pair of scissors. Explain thatresources may not be carried over fromThis activity is from Anderson, D. & Chasey, J. (1999). A production possibilities frontier experiment: Links and smiles, http://www.marietta.edu/ delemeeg/exernom/f99.htm, June 15, 2013.2HIGH SCHOOL ECONOMICS 3rd EDITION COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NYBK-CEE-ECONOMICS-131302.indb 7713-06-2014 03:23:21
Lesson 1 Production Possibilities and Opportunity Costone period to the next, and that only onelayer of paper may be cut at a time.36. Explain that in each round, students willhave 80 seconds of production time. Atthe end of each round, they should recordand plot their results as points in theaxes in Activity 1.3.a.b.c.Round 1: Tell students to make fourprotractors and as many rulers as theycan. Students should use the large rectangles to make the protractors. Theymay or may not have time to make allfour rulers. Tell them not to worry ifthey do not use all the materials.Round 2: Tell students to make onlyrulers. Students should use the fournarrow rectangles to make the rulers.To make more rulers, they should cutthe large rectangles in half. Again,they may not use all the materials.Round 3: Tell students to make onlyprotractors. Students should use thelarge rectangles to make protractors.They must tape together the smallerrectangles to make additional protractors. This takes considerabletime; it is unlikely that they willfinish all the materials.d. Round 4: Tell students to make oneprotractor and as many rulers as theycan. They will have to use one largesheet for the protractor, move on tothe narrow rectangles for the rulers,and use any remaining time to cut thelarge rectangles into rulers.37. Have students draw the PPF based on thepoints they have plotted. Ask: Is the PPF astraight line, as in the coltan example?It is generally not a straight line.Does the opportunity cost remainconstant?8No, depending on how many rulers thestudents could produce, the opportunitycost of protractors will vary.38. Project the Excel workbook entitled“Protractors and Rulers” on an interactive whiteboard or using an LCD projector.Enter data from one student (see notebelow) as an example. Ask students tocomplete the questions in Activity 1.3:(1) What was the opportunity cost of thefirst protractor (from point A to B)?Will vary with results, but should below, perhaps only one ruler, maybenone, if student gave up.(2) What was the opportunity cost of thelast protractors (from point C to D)?Will vary, but should be higher: maybefour or three rulers per protractor, orfour rulers for two protractors—tworulers per protractor.(3) Why did the opportunity costincrease?To make the first few protractors,resources were better suited for making protractors than making rulers,so students give up a small numberof rulers for a relatively large number of protractors. As students makemore protractors, they must useresources more specialized for making rulers, so they lose a lot of rulersfor relatively few protractors.(Note: The intent of the activity isto form a curved PPF. This is accomplished by providing resources [narrow paper and larger paper] that arenot perfect substitutes. The production of four protractors and manyrulers is the easiest combination toproduce because the resources aremost suitable for that combination.Other combinations—all rulers orHIGH SCHOOL ECONOMICS 3rd EDITION COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NYBK-CEE-ECONOMICS-131302.indb 813-06-2014 03:23:21
Production Possibilities and Opportunity Cost Lesson 1(4) Ask: How does this relate to realworld production possibilities?Resources are often specialized. Forexample, the resources needed tomake butter are less useful for making guns. Producing only guns, forexample, would require that, whenall the resources best suited to making guns were used up, the steel vatsused in butter production would haveto be melted down to make guns. Thisis analogous to altering protractorspecialized strips for use in rulerproduction. Similar specialization ofresources, and the increasing opportunity costs of production that result,exists for many of the goods we consider producing.CLOSURE39. Tell students that economists arefamous for the statement “There is nosuch thing as a free lunch.” Askstudents to apply what they havelearned in this lesson by writing ashort letter to the editor illustratingthis concept. Tell them to pick twogoods to write about to help them do so,and to include opportunity cost, tradeoffs, production possibilities frontierand increasing opportunity cost.ASSESSMENTMultiple ChoiceImagine a farmer who owns a large, productive parcel of land on which she can produce either soybeans or corn. The questionsthat flow refer to this production possibilitiesschedule which shows the points along theproduction possibilities frontier (PPF) forthis farmer.1,2001,000800Corn (bushels)all protractors, for example—requiremore labor to turn less suitableresources into more than four of agood. This should increase the opportunity cost of production, making thePPF curved. Of course, you should beprepared to get other results becausestudents may distract one anotherduring production or increase productivity as they learn by doing. Inchoosing a student to report results,try to pick one whose graph producesa curved PPF. Hint: You can changethe production time based on yourexperience in a class. If too manypeople finish all materials everyround [a straight line PPF], reducethe production time.)600400200005001,0001,500Soybeans (bushels)1,7501,5001,0005000Corn (bushels)02507509001,000HIGH SCHOOL ECONOMICS 3rd EDITION COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NYBK-CEE-ECONOMICS-131302.indb 92,000Soybeans (bushels)913-06-2014 03:23:23
Lesson 1 Production Possibilities and Opportunity Cost1. The production possibilities frontiershown abovea. depicts the boundary betweenthose combinations of corn andsoybeans that can be producedby one farmer given availableresources and the current stateof technology.b.shows how many goods and servicesare consumed by one farmer.c.is a model that assumes there is noscarcity and no opportunity cost.Constructed ResponseChoose two goods and draw a PPF in whichthe opportunity cost for a good increases asmore of the good is produced. Explain whythe opportunity cost increases as more of onegood is produced. Finally, identify two thingsthat will cause your PPF to shift outward.Answers will vary, according to goods chosen.The opportunity cost will increase becauseresources not suited to the production of agood are eventually used for its production.Technological improvements or increasedresources will shift the PPF.d. shows that both soybean and cornproduction can be increased at thesame time.2. Which of these is not a possible combination of soybean/corn output?a.1,000 bushels of soybeans, 750 bushelsof cornb.500 bushels of soybeans, 500 bushelsof cornc. 500 bushels of soybeans, 1,000bushels of cornd. 1,500 bushels of soybeans, 250 bushelsof corn3. Last year, this farmer produced 1,000bushels of soybeans. This year, she wantsto produce 1,500 bushels of soybeans.Assuming no change in resources ortechnology, what will her opportunitycost be?a. 1,500 bushels of soybeansb.1,000 bushels of cornc.400 bushels of soybeansd. 500 bushels of corn10HIGH SCHOOL ECONOMICS 3rd EDITION COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NYBK-CEE-ECONOMICS-131302.indb 1013-06-2014 03:23:23
Production Possibilities and Opportunity Cost Lesson 1ACTIVITY 1.1Smartphones and Tablet ComputersIntroduction1. Imagine you are a citizen of a country called Technologia, which produces onlytwo goods: smartphones and tablet computers. You will be participating in asimulation that will produce the production possibilities frontier (PPF) forthese two goods. What do these two goods have in common?2. One resource needed to produce both smartphones and tablet computers is therare earth mineral coltan, a heat-resistant ore that can hold a strong electricalcharge. It is used in making the capacitors needed to produce the touch screens inboth smartphones and tablet computers. Coltan is rare and almost all the depositsare in African countries such as the Democratic Republic of Congo.PPF for Technologia3. Three boxes will be used in this simulation: “coltan,” “smartphones,” and “tablet computers.” The coltan box will contain a number of cards, each with asmartphone on one side and a tablet computer on the other. Ten students willbe selected to simulate production of either smartphones or tablet computers.Those students will be making decisions about how to use coltan resources.Once the round begins, students will produce as many of each good as possible.Goods are produced by turning each coltan card to the appropriate good andpassing the card to the next person in line until it is placed in the appropriate box. Students can only handle one card at a time. The team with the mostgoods in their box at the end of the round will be declared the winners.4. After each round, enter your results into Table 1.1 and plot on the blank axesprovided.Table 1.1: Smartphone and Tablet Computer Production PossibilitiesRound (point) Number of SmartphonesNumber of Tablet Computers1 (A)2 (B)3 (C)4 (D)5 (E)6 (F)HIGH SCHOOL ECONOMICS 3rd EDITION COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NYBK-CEE-ECONOMICS-131302.indb 111113-06-2014 03:23:23
Lesson 1 Production Possibilities and Opportunity CostSmartphones and Tablet ets12HIGH SCHOOL ECONOMICS 3rd EDITION COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NYBK-CEE-ECONOMICS-131302.indb 1213-06-2014 03:23:24
Production Possibilities and Opportunity Cost Lesson 1Activity 1.2Smartphone and Tablet Computer CardsSmartphonesHIGH SCHOOL ECONOMICS 3rd EDITION COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NYBK-CEE-ECONOMICS-131302.indb 131313-06-2014 03:23:30
Lesson 1 Production Possibilities and Opportunity CostActivity 1.2 (Continued)Smartphone and Tablet Computer CardsTablet Computers14HIGH SCHOOL ECONOMICS 3rd EDITION COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NYBK-CEE-ECONOMICS-131302.indb 1413-06-2014 03:23:41
Production Possibilities and Opportunity Cost Lesson 1Activity 1.3Rulers and ProtractorsOften when countries or individuals choose between combinations of two goods,the resources needed to produce one good are different from those needed to produce the other good. You will be participating in the simulation of the productionof two goods: rulers and protractors. Rulers are produced using 3.5-inch 1-inchstrips of paper that you will cut from the Rulers and Protractors Sheet. A ruler isproduced by making five vertical marks (see example below, not actual size). Protractors are produced by using scissors to cut a semicircle from a 3.5-inch 2-inchrectangle and drawing five marks around the edge of the semicircle (see examplebelow, not actual size).Ruler ExampleProtractor ExampleBefore the simulation begins, use scissors to cut along the lines of Activity 1.4.Once completed, you should have 16 strips and 16 rectangles.For each round, begin with four strips, four rectangles, a pen, a roll of tape, anda pair of scissors. Resources may not be carried over from one period to the next,and only one sheet of paper may be cut at a time. You may tape together rulerstrips to make protractors.HIGH SCHOOL ECONOMICS 3rd EDITION COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NYBK-CEE-ECONOMICS-131302.indb 151513-06-2014 03:23:44
Lesson 1 Production Possibilities and Opportunity CostIn each round, you will have 90 seconds of production time. At the end of eachround, you will plot results in Table 1.2 below.Round 1: Make four protractors and as many rulers as you can.Round 2: Make only rulers.Round 3: Make only protractors.Round 4: Make one protractor and as many rulers as you can.Record the number of rulers and protractors produced in each round in Table 1.2.Careful! The rounds are not in
opportunity cost—choosing to do one thing prevents us from having the opportunity to do another. The PPF can be used to calculate the opportunity cost of various production decisions. For example, given a set of scarce resources, in order to produce additional "butter," a society has to give up the opportunity to produce some "guns."
4 Step Phonics Quiz Scores Step 1 Step 2 Step 3 Step 4 Lesson 1 Lesson 2 Lesson 3 Lesson 4 Lesson 5 Lesson 6 Lesson 7 Lesson 8 Lesson 9 Lesson 10 Lesson 11 Lesson 12 Lesson 13 Lesson 14 Lesson 15 . Zoo zoo Zoo zoo Yoyo yoyo Yoyo yoyo You you You you
Participant's Workbook Financial Management for Managers Institute of Child Nutrition iii Table of Contents Introduction Intro—1 Lesson 1: Financial Management Lesson 1—1 Lesson 2: Production Records Lesson 2—1 Lesson 3: Forecasting Lesson 3—1 Lesson 4: Menu Item Costs Lesson 4—1 Lesson 5: Product Screening Lesson 5—1 Lesson 6: Inventory Control Lesson 6—1
Lesson 41 Day 1 - Draft LESSON 42 - DESCRIPTIVE PARAGRAPH Lesson 42 Day 1 - Revise Lesson 42 Day 1 - Final Draft Lesson 42 - Extra Practice LESSON 43 - EXPOSITORY PARAGRAPH Lesson 43 Day 1 - Brainstorm Lesson 43 Day 1 - Organize Lesson 43 Day 1 - Draft LESSON 44 - EXPOSITORY PARAGRAPH Lesson 44 Day 1 - Revise
For Children 4-7 Years Old Series 6 Old Testament: Genesis From Creation to the Patriarchs Lesson 1 Creation Lesson 2 Adam and Eve Lesson 3 Cain and Abel Lesson 4 Noah and the Ark Lesson 5 Abraham’s Call Lesson 6 Isaac – The Son of Promise Lesson 7 Isaac and Rebekah Lesson 8 Jacob and Esau Lesson 9 Jacob Marries Rachel Lesson 10 Jacob is .
Contents Preface 4 Lesson 1 What Is Wisdom? 14 Lesson 2 Wisdom and Foolishness 27 Lesson 3 The Example of Wise Men 40 Lesson 4 Our Home Life 55 Lesson 5 Honoring Our Parents 71 Lesson 6 Freedom and Responsibility 85 Lesson 7 How Attitudes Affect Actions 102 Lesson 8 Right Attitudes About Myself 117 Lesson 9 Good Friends and Bad Friends 130 Lesson 10 Choosing the Right Friends 140
iii UNIT 1 Lesson 1 I’m studying in California. 1 Lesson 2 Do you have anything to declare? 5 Lesson 3 From One Culture to Another 8 UNIT 2 Lesson 1 You changed, didn’t you? 13 Lesson 2 Do you remember . . . ? 17 Lesson 3 Women’s Work 20 UNIT 3 Lesson 1 We could have an international fall festival! 25 Lesson 2 You are cordially invited. 29 Lesson 3 Fall Foods 32 UNIT 4 Lesson 1 Excuses .
Production Possibilities 1.3 Trade offs and opportunity costs can be illustrated using a Production Possibilities Curve. PPC—shows all the possible combinations of 2 goods or services. Given
Society's Economizing Problem 10 Scarce Resources / Resource Categories Production Possibilities Model // Production Possibilities Table / Production Possibilities Curve / Law of Increasing Opportunity Costs /
