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GENESEE ACADEMY SOCIAL SCIENCE

NOTES LESSON 9

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BY: KE'ARA BROWN-SMITH

Economics Lesson 9

 

See overhead transparency 14-3

 

Production frontier

 

Public Goods   

-Allocation

Choosing which wants/needs are met

-you can’t do it all you have to make choices

-Scarcity- you only have so much stuff you have to allocate what you’ll spend your money on

 

 

You have $400 for a trip for 4 days How will you spend it?

-split rooms with someone

-go to a resturant (salad bar) for lunch (its cheaper)

dinner $1.50 or $2.00 more and eat less at night

1 tak of gas = 400 miles

 

-         Production Possibilities Curve

-         If you cant do it all you have to make choices

-         Production possibilities curve, private goods and  public goods

 Public (guns) private (butter)    

-(A) making as much butter and no guns

-(B) making as much guns and no butter

 

In WWII more guns and than butter (D)

If we wanted some of each make   and   (F)

More butter than guns (C)

Curve A/B

 

-Bring in better machines & more people to push production curve out incereasing our ability to do both

more efficiency = to capacity or better curve

-production down = less of everything

- We can only make100% of one or of the other or some other percentage of each that equals 100%                                                  

 
 
 
 
"We hold these truths to be self-evident, that all men are created equal,..." Declaration of Independence, 1776