Today’s Choices, Tomorrow’s Possibilities: The PPC and Economic Growth

Objective:
Students will explore how decisions about resource allocation today can influence future production possibilities. They will analyze the tradeoffs between consumption and investment and understand how these choices drive long-term economic growth and shift the Production Possibilities Curve (PPC) outward.

Materials Needed:


Lesson Steps:

1. Introduction (10 minutes):

  • Define the Production Possibilities Curve (PPC): A graphical representation of tradeoffs between two goods that can be produced with limited resources.
  • Introduce the concept of economic growth: An outward shift of the PPC due to factors like investment in capital, technology, and infrastructure.
  • Explain the tradeoff between consumption (immediate satisfaction) and investment (future growth).

2. Viewing Clip (5 minutes):


3. Group Discussion (15 minutes):

  • Divide students into small groups to discuss:
    • How does the PPC illustrate the tradeoffs Sam faced?
    • What is the opportunity cost of focusing on dragonglass research?
    • How might this decision influence the future PPC of the Night’s Watch?
    • What parallels can you draw to real-world examples of investment in research or infrastructure?

4. Concept Application (20 minutes):

  • Case Study Analysis:
    • Provide real-world examples of investment vs. consumption tradeoffs:
      • Investing in education or infrastructure vs. increasing consumer spending.
      • Research and development in renewable energy vs. immediate use of fossil fuels.
    • Ask students to analyze:
      • How these decisions impact today’s PPC.
      • How they influence the potential for future growth and shift the PPC outward.
      • The opportunity costs involved in prioritizing investment over consumption.

5. Wrap-Up and Reflection (10 minutes):

  • Summarize key takeaways:
    • Decisions about resource allocation today influence future production capabilities.
    • Investing in capital, technology, and infrastructure drives long-term economic growth and shifts the PPC outward.
    • Balancing consumption and investment is critical for sustainable growth.
  • Pose a reflective question: How would you balance short-term satisfaction with long-term growth in your own life or a business setting?

6. Activity or Homework (20 minutes):

  • Design a Resource Allocation Plan:
    • Present students with a hypothetical economy producing two goods: food (consumption) and tools (investment).
    • Groups decide how to allocate resources between the two today, considering:
      • Immediate needs and satisfaction.
      • Long-term benefits and future PPC shifts.
    • Groups illustrate their decisions on a PPC graph and predict how their choices will influence future production possibilities.
    • Facilitate a discussion: How do investment-heavy allocations affect the standard of living in the short and long term?