Ch 78: Scarcity, Opportunity Cost & Production Possibility Curves

About This Chapter

Study for an upcoming test covering scarcity, opportunity cost and production possibility curves utilizing the resources in this chapter. Boost your knowledge with help from informative lessons, and confirm your comprehension by taking multiple-choice quizzes and a chapter exam.

Scarcity, Opportunity Cost & Production Possibility Curves - Chapter Summary

The short and engaging lessons in this chapter make it easy to understand scarcity, opportunity cost and production possibility curves. Watch fun videos anytime via your computer, smartphone or tablet to examine topics that include the function of economic choice, economic efficiency and the production possibilities model. When finished with this chapter, you will be ready to:

  • Use the concept of scarcity to explain the meaning of economics
  • Define opportunity cost and discuss its use in the real world
  • Calculate and analyze opportunity cost
  • Describe the application of the production possibilities model
  • Explain scenarios that shift the production possibilities curve

Feel free to use the resources in this chapter in a way that aligns with your learning habits and study needs. Choose any number of lessons to review in the sequence you desire, and revisit them as many times as you'd like. Take multiple-choice quizzes before, during or after reviewing the lessons to assess your comprehension of the concepts they examine. Be sure to submit questions to our experts to clarify any information you don't fully understand.

6 Lessons in Chapter 78: Scarcity, Opportunity Cost & Production Possibility Curves
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.

Opportunity Cost: Formula & Analysis

6. Opportunity Cost: Formula & Analysis

A fundamental economic analysis - whether you're running a country, a business or your personal finances - determines the opportunity costs of a decision. In this lesson, you'll learn about opportunity cost, its formula and how to calculate it.

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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