About This Chapter
Scarcity, Opportunity Cost & Production Possibilities - Chapter Summary
Our instructors provide broad content coverage to fully capture what scarcity is and the resultant effects of limited resources in the marketplace. Learn that scarcity creates the reality of opportunity cost in decisions that you and businesses make on a daily basis. Opportunity cost encompasses monetary value as well as time.
You will also learn about the various factors of production and how production questions are dealt with across traditional, market, command and mixed economies. You will gain a solid understanding of the production possibilities curve as you move through the chapter's lessons and also become familiar with a number of aspects that can cause a shift to the curve. This chapter provides all the information and illustration needed to be able to accomplish these targets following completion of the lessons:
- Identify the various factors of production and provide examples of each factor
- Calculate the opportunity cost involved in choosing between possibilities
- Explain how the production possibility curve can be shifted
- Discuss production across the different economic systems
- Describe the assumptions involved in using the production possibilities model
After you view the lessons in this chapter in the available video and text delivery formats, you can see how well you understand and can apply the content by taking short self-assessment quizzes. The video lessons boast convenient features for navigation that allow you to quickly view areas with which you wish to spend more time. You will also notice that the primary key terms are typically linked to lessons in text for further elaboration.
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.
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.
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.
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.
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.
6. Production in Traditional, Market, Command & Mixed Economic Systems
This lesson discusses how market, traditional, mixed, and command economic systems operate. The key features, benefits, and drawbacks of each are summarized. Learn how the economic systems answer the three basic economic questions that face all economies.
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.
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Other chapters within the MTTC Economics (007): Practice & Study Guide course
- Economic Concepts & Terminology
- Impact of Historical Events on the Economy
- Impact of Geography on Economics
- Structure of Local & Federal Governments
- Government & Economic Systems
- Democratic Values & Society
- Government Impact on Economics
- Basics of Measuring the Economy
- Producers & Production in Microeconomics
- Supply, Demand & Market Equilibrium
- Price Determination & Elasticity
- Economic Market Structures
- Business Types & Decision Making
- Understanding Economic Growth and Productivity
- Inflation & Adjustment in Economics
- Unemployment Basics
- Understanding Inflation & Unemployment
- Overview of Aggregate Demand & Supply
- Understanding Macroeconomic Equilibrium
- Scarce Economic Resource Markets Basics
- Fiscal & Monetary Policies
- Contractionary & Expansionary Gaps
- Money & the Market
- The Central Bank & Monetary Policy
- Types of Economic Advantage
- Foreign Exchange & Trade Balance
- Overview of Inflows, Outflows & Restrictions
- International Economic Development
- Consumer Decisions in Economics
- Consumer Protection Laws & Agencies
- Savings & Investments for Personal Finance
- Effective Teaching Strategies
- Instructional Teaching Strategies
- Assessment Strategies for Teachers
- Types of Student Assessments
- Technology Uses in the Classroom
- MTTC Economics Flashcards