Copyright

Ch 1: The Production Possibilities Curve: Help & Review

About This Chapter

The Scarcity, Choice and the Production Possibilities Curve chapter of this College-Level Principles of Macroeconomics Help and Review course is the simplest way to master scarcity, choice and the production possibilities curve. This chapter uses simple and fun videos that are about five minutes long plus lesson quizzes and a chapter exam to ensure students learn the essentials of the topic.

Who's it for?

Anyone who needs help learning or mastering college macroeconomics material will benefit from taking this course. There is no faster or easier way to learn the subject. Among those who would benefit are:

  • Students who have fallen behind in understanding economic scarcity or working with opportunity cost
  • Students who struggle with learning disabilities or learning differences, including autism and ADHD
  • Students who prefer multiple ways of learning economics (visual or auditory)
  • Students who have missed class time and need to catch up
  • Students who need an efficient way to learn about scarcity, choice and the production possibilities curve
  • Students who struggle to understand their teachers
  • Students who attend schools without extra economics learning resources

How it works:

  • Find videos in our course that cover what you need to learn or review.
  • Press play and watch the video lesson.
  • Refer to the video transcripts to reinforce your learning.
  • Test your understanding of each lesson with short quizzes.
  • Verify you're ready by completing the Scarcity, Choice and the Production Possibilities Curve chapter exam.

Why it works:

  • Study Efficiently: Skip what you know, review what you don't.
  • Retain What You Learn: Engaging animations and real-life examples make topics easy to grasp.
  • Be Ready on Test Day: Use the Scarcity, Choice and the Production Possibilities Curve chapter exam to be prepared.
  • Get Extra Support: Ask our subject-matter experts any scarcity, choice or production possibilities curve question. They're here to help!
  • Study With Flexibility: Watch videos on any Web-ready device.

Students will review:

This chapter helps students review the concepts in a Scarcity, Choice and the Production Possibilities Curve unit of a standard college-level principles of macroeconomics course. Topics covered include:

  • Economic scarcity and the function of choice
  • How to calculate opportunity cost
  • Applying the production possibilities model
  • Shifts in the production possibilities curve

9 Lessons in Chapter 1: The Production Possibilities Curve: Help & Review
Test your knowledge with a 30-question chapter practice test
Economic Scarcity and the Function of Choice

1. 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

2. 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

3. 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

4. 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

5. 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.

Labor Rate Variance: Definition & Formula

6. Labor Rate Variance: Definition & Formula

Labor variances are the differences between the planned and actual costs of labor as they relate to a project. This lesson will go over the two types or labor variances and take you through the formula for computing them.

Transactions Costs in Economics: Definition, Theory & Examples

7. Transactions Costs in Economics: Definition, Theory & Examples

In this lesson, we'll discuss transactions costs and their role in contributing to the economy. Our discussion will include definitions of key terms, the theory of transaction costs, and the different types of transaction costs.

What is Agglomeration in Economics? - Definition, Process, Theory & Effects

8. What is Agglomeration in Economics? - Definition, Process, Theory & Effects

This lesson explores the clustering of businesses and resources known in economics as agglomeration, including a definition of the concept along with a discussion of the underlying theory and process.

Who is Paul Krugman? - Economic Theory & Overview

9. Who is Paul Krugman? - Economic Theory & Overview

Modern economic theory began with Adam Smith nearly 300 years ago. While many of his theories still apply, the field of economics has changed. Thanks to new economists like Paul Krugman, our understanding of economics can develop with the discipline.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Support