Title: Production Possibilities Frontier (3/3) The Law of Increasing 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.

The final segment of The Production Possibilities Frontier uses the production possibilities frontier to demonstrate how, in the real world, opportunity cost increases as production increases. This is a difficult concept made simple using the PPF.

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