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The Problem of Scarcity and Choice · Term 1

Production Possibilities Frontier Basics

Introducing the concept of production possibilities to illustrate scarcity, choice, and opportunity cost.

Key Questions

  1. Explain how a production possibilities frontier demonstrates trade-offs.
  2. Analyze the implications of points inside versus outside the production possibilities curve.
  3. Construct a simple production possibilities graph for a two-good economy.

ACARA Content Descriptions

AC9HE7K01
Year: Year 7
Subject: Economics & Business
Unit: The Problem of Scarcity and Choice
Period: Term 1

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