Understanding Scarcity through the Production Possibilities Frontier Model

This video lays out the issues we encounter in chapter 6 of RSSS: Scarcity: "You Can't Always Get What you Want."  When you watch this video keep these questions in mind: What does it mean if we lie inside of the curve? What implications does this have on the concept of opportunity cost and scarcity?



The next video explains the concept of opportunity cost. Watch this if you are having difficulty grasping the importance of this term in the context of the PPF model.