About This Chapter
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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Other chapters within the Georgia Milestones - Economics/Business/Free Enterprise EOC: Test Prep & Practice course
- Georgia Milestones: Introduction to Economics
- Georgia Milestones: Consumer Behavior & Microeconomics
- Georgia Milestones: Supply & Demand
- Georgia Milestones: Economic Interdependency
- Georgia Milestones: Economic Price & Income Elasticity
- Georgia Milestones: Types of Economic Systems
- Georgia Milestones: Government's Role in Economic Systems
- Georgia Milestones: Market Structures in the US Economy
- Georgia Milestones: Business Organizations
- Georgia Milestones: Making Business Decisions
- Georgia Milestones: Understanding Production in Microeconomics
- Georgia Milestones: Comparative vs. Absolute Advantage
- Georgia Milestones: Macroeconomic Equilibrium
- Georgia Milestones: Scarce Economic Resource Markets
- Georgia Milestones: Measuring Economic Activity
- Georgia Milestones: Economic Growth & Productivity
- Georgia Milestones: Inflation Measurement & Adjustment
- Georgia Milestones: Understanding Unemployment
- Georgia Milestones: Aggregate Supply & Demand
- Georgia Milestones: Fiscal & Monetary Policies
- Georgia Milestones: Expansionary & Contractionary Policies
- Georgia Milestones: Money, Banking & Financial Markets
- Georgia Milestones: Central Bank & the Money Supply
- Georgia Milestones: Foreign Exchange & the Balance of Payments
- Georgia Milestones: Trade Barriers & Regulations
- Georgia Milestones: Consumer Decision Making
- Georgia Milestones: Savings & Investments
- Georgia Milestones: Credit & Interest Rates
- Georgia Milestones: Insurance
- Georgia Milestones: Taxation
- Georgia Milestones - Economics/Business/Free Enterprise EOC Flashcards