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Ch 2: Georgia Milestones: Scarcity, Choice & the Production Possibilities Curve

About This Chapter

These lessons will help you review the concepts of consumer goods, function of choice, opportunity cost, production possibilities and the factors that affect production. Use them to prepare for related questions on the Georgia Milestones Economics/Business/Free Enterprise end-of-course exam.

Georgia Milestones: Scarcity, Choice & the Production Possibilities Curve - Chapter Summary

In these lessons, our professional instructors will help you review the factors that affect what businesses choose to produce and how they choose to spend resources, as you study for the Georgia Milestones Economics/Business/Free Enterprise exam. Follow along to improve your understanding of:

  • Definition and types of consumer goods
  • Concept of economic scarcity and its importance to the study of economics
  • The role of opportunity costs in economic decision making
  • Calculations for opportunity cost
  • Production Possibilities models and uses for the production possibilities curve
  • Four key factors necessary for production
  • Main allocation strategies for making decisions regarding resource usage

In addition to these lessons, use the lesson transcripts to re-review the information covered in them, as well as the key terms and figures of the chapter. Take the lesson quizzes and when you discover a topic you don't understand, use the video tags to return to that part of the lesson. You can also ask our instructors for assistance if you have a question.

9 Lessons in Chapter 2: Georgia Milestones: Scarcity, Choice & the Production Possibilities Curve
Test your knowledge with a 30-question chapter practice test
Consumer Goods: Definition, Types & Examples

1. Consumer Goods: Definition, Types & Examples

We all purchase and consume goods every day. Most of those goods satisfy a need or want and are called consumer goods. They are different than those goods that are used as input to produce other goods. In this lesson, you will learn about types of consumer goods and take a quiz.

Economic Scarcity and the Function of Choice

2. Economic Scarcity and the Function of Choice

Discover the foundation of the social science of economics as we explore the basic economic problem of scarce resources and unlimited wants using key definitions that create a framework for understanding everyday behavior in a nation.

Opportunity Cost: Definition & Real World Examples

3. Opportunity Cost: Definition & Real World Examples

Learn the most important concept of economics through the use of real-world scenarios that highlight both the benefits and the costs of decisions. Opportunity cost is a simple yet powerful principle that reveals how to make the best economic decisions possible, and it explains why people make the choices they do.

How to Calculate Opportunity Cost

4. How to Calculate Opportunity Cost

Learn the formula that reveals the economic value in any major choice between two possibilities. Every choice involves tradeoffs, and opportunity cost shows you how to measure these tradeoffs.

Applying the Production Possibilities Model

5. Applying the Production Possibilities Model

Producers in the economy use a visual model, called the production possibilities curve, to make the most efficient production decisions and maximize output. Learn how this model reveals the tradeoffs of every production decision with the simplified example of an economy that produces only two goods.

Shifts in the Production Possibilities Curve

6. Shifts in the Production Possibilities Curve

In this lesson you will learn how changes inside an economy lead to changes in the production possibilities of a nation. See how different scenarios from everyday life lead to shifts in the production possibilities curve.

Factors of Production: Definition & Examples

7. Factors of Production: Definition & Examples

There are four factors of production. The four factors are inputs needed to produce a product or provide a service. These factors include natural resources, human resources, capital, and entrepreneurship.

Using the Production Possibility Curve to Illustrate Economic Conditions

8. Using the Production Possibility Curve to Illustrate Economic Conditions

This lesson explains the economic concept of the production possibility curve, which is used to illustrate conditions and make good business decisions. Trade-offs, economic efficiency, economic inefficiency, and economic growth are explained.

Allocation Strategies: Definition & Examples

9. Allocation Strategies: Definition & Examples

Allocation strategies are necessary because resources, such as goods and services, are only available in limited quantities while wants are unlimited. In this lesson, six allocation strategies to distribute scarce resources will be discussed and illustrated with examples.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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Other Chapters

Other chapters within the Georgia Milestones - Economics/Business/Free Enterprise EOC: Test Prep & Practice course

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