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The PP Curve

The PP Curve. EQ: How do nations increase their wealth?. Production Possibilities Curve or Frontier. You must make yourself worse off in the short run to make yourself better off in the long run. Study. Leisure. Peanuts. Oranges. Capital Goods. Consumption Goods.

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The PP Curve

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  1. The PP Curve EQ: How do nations increase their wealth?

  2. Production Possibilities Curve or Frontier

  3. You must make yourself worse off in the short run to make yourself better off in the long run.

  4. Study Leisure

  5. Peanuts Oranges

  6. Capital Goods Consumption Goods

  7. http://www.bradyworld.com/cover/minnow.jpg The ship set ground on the shore of this uncharted desert isle

  8. http://images.google.com/imgres?imgurl=www.timvp.com/gillign2.jpg&imgrefurl=http://images.google.com/imgres?imgurl=www.timvp.com/gillign2.jpg&imgrefurl= http://www.timvp.com/gilligan.html&h=270&w=295&prev=/images%3Fq%3Dgilligan%2527s%2Bisland% 26svnum%3D10%26hl%3Den%26lr%3D%26ie%3DUTF-8%26oe%3DUTF-8

  9. http://www.coracle-fishing.net/corac-pix2/net-11x.jpg http://www.tasaday.com/images/_sl-003.jpg http://www.surfingforlife.com/g/cult_b10.jpg

  10. http://www.zeroimpactproductions.com/seine-over-freezer.jpg

  11. http://www.riveroflifefarm.com/images/lodging/th/th2/tree-house-summer.jpghttp://www.riveroflifefarm.com/images/lodging/th/th2/tree-house-summer.jpg

  12. Capital Goods By producing more capital goods relative to consumption goods, the economy’s Production-possibilites curve to shifts OUTWARD and shifts outward FASTER. Consumption Goods

  13. P P Curve

  14. Capital This is GOOD! Consumption If the PP shifts outward

  15. Capital This is BAD!! Consumption If the PP shifts inward

  16. Capital Goods Consumption Goods There are five variables that shift the PP outward--

  17. Five Variables that Shift the PP Outward: • Increase the productive labor force • (productivity). • Increase the quantity and quality of natural • resources. 3. Increase the quantity and quality of capital. 4. Increase health and education. 5. Increase technology.

  18. Japan 1940

  19. What did Japan do on December 7, 1941 ? Capital Japan 1941 What capital goods did Japan produce in 1940? rice Consumption What consumption goods did it produce?

  20. What did the U.S. do to Japan for this dirty deed? Capital Japan 1945 rice Consumption

  21. http://www.archives.gov/digital_classroom/history_day/bright_ideas/images/nagasaki.gifhttp://www.archives.gov/digital_classroom/history_day/bright_ideas/images/nagasaki.gif morning of August 6, 1945 Nagasaki http://www.nhc.rtp.nc.us:8080/tserve/nattrans/ntimages/hiroshima.jpg Hiroshima 11:02 am, August 9, 1945

  22. What do you think happened to Japan’s productive labor force? Capital Japan 1945 rice Consumption

  23. What do you think happened to the quantity and quality of its natural resources? Capital Japan 1945 rice Consumption

  24. What do you think happened to the quantity and quality of its capital stock? Capital Japan 1945 rice Consumption

  25. What do you think happened to its health and education? Capital Japan 1945 rice Consumption http://hiroshima.tomato.nu/image/park_ma/e11-10.jpg

  26. What do you think happened to its technology? Capital Japan 1945 rice Consumption

  27. What happened to Japan’s PP? Capital Japan 1945 rice Consumption

  28. Capital Goods Consumption Goods

  29. http://www.ellsworthamerican.com/archive/news2000/08-24-00/news3_08-24-00b.gifhttp://www.ellsworthamerican.com/archive/news2000/08-24-00/news3_08-24-00b.gif

  30. Capital Goods Consumption Goods

  31. Capital Goods Consumption Goods

  32. Guns Military Butter Consumption goods

  33. What are some examples of capital goods?

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