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Production Possibilities Frontier

Production Possibilities Frontier

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Production Possibilities Frontier

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  1. Production Possibilities Frontier

  2. One of the most important strategies of economists is the economic model Simple models can be constructed that reduce complex situations to their most basic elements

  3. Production Possibilities Frontier John Deere & Company

  4. Opportunity Cost John Deere & Company 5000 3000 The opportunity cost of producing 5000 beers is 20 tractors 30 50

  5. Economic Growth Increased productivity and additional factors of production expand production possibilities… GROWTH!!!

  6. Circular Flow of Economic Activity Product Markets Business Income Consumer Spending Goods Services Goods Services Businesses Individuals Land Capital Labor Entrepreneurs Buy Productive Resources Factor Markets Income from Resources Payments for Resources