Topic Five (1.5): Production Possibility Curves

Introduction Icon.png Introduction

In this topic you will be introduced the first concept in Economics: the production possibility curve which is also known as the production possibilities frontier (PPF). It is a graph that shows all the different combinations of output of two goods that can be produced using available resources and technology. The PPF captures the concepts of scarcity, choice and trade-offs.

Skills Icon.png Task

Economics in Context

  • Read the article on page 32 of the textbook and think about how the restricting of the Nigerian economy has come about.
  • Further guidance and model answers can be found in the digital textbook and in General Resources.

Watch Icon.png Watch

Now watch this video, which explains the concepts of PPCs/PPFs and the causes of the movements and shifts in the curves, and make notes:

WATCH – Production Possibility Curves (PPCs/PPFs) (YouTube) Links to an external site.

Read & Make Notes Icon.png Read and Make Notes

Read and supplement your notes from the following sections of the textbook on pages 32 to 37:

    • 5.1 The production possibility curve;
    • 5.2 The production possibility curve and opportunity cost;
    • 5.3 The shape of the production possibility curve;
    • 5.4 Shifts in the production possibility curve.

Glossary Icon.png Glossary

Highlight any new terminology on your glossary.

Activities Icon.png Activities in the Book

  • It is very important that you are able to draw PPCs/PPFs, so please make sure that you complete Activity 5.2 on page 35 of the textbook.
  • Suggested answers can be found in the digital textbook and in General Resources.

Skills Icon.png Task

Think Like an Economist

  • Read and complete the ‘Think like an Economist’ task on page 37 of the textbook.
  • Suggested answers can be found in the digital textbook and in General Resources.

Consolidate Icon.png Consolidate

  • Now try the exam-style questions on pages 38 and 39 of the textbook.
  • Suggested answers can be found in the digital textbook and in General Resources.

Reflect Icon.png Reflect

  • Draw up a table like the one on page 39 of the textbook and complete the self-evaluation.
  • If there are any areas about which you are unsure, please go back over your notes, the textbook and the resources listed in this topic before moving on.