Title: Production Possibilities Frontier (1/3) Scarcity and Opportunity Cost -- Video
Course: Recommended Resources for AP Macro from FRE > Section: Unit 1: Basic Economic Concepts

Have you been to a frontier lately? Whether you realize it or not, the economy has a frontier—it has an outer limit of economic production. In this episode of the Economic Lowdown Video Series, Scott Wolla explains how the production possibilities frontier (PPF) illustrates some very important economic concepts.

This segment of The Production Possibilities Frontier uses the fictional economy of Econ Isle to discuss how limited resources result in a scarcity problem for the economy. Econ Isle’s production possibilities are graphed to show its frontier, and then used to discuss the opportunity costs of its production and consumption decisions.

Watch the video and then click "next" to take the quiz.