- Circular Flow Model of a Market Economy
- Click on the link: Circular flow of income and expenditures | Macroeconomics | Khan Academy
- Machine delivered to SA without instructions—Watch the following video of the workers filling in the digger’s bucket. What would happen if the workers figured out how to work it properly? There is no increase in the maximum production, but the output can move towards the maximum production level.
In “Limitless” a new drug is developed that dramatically expands the ability of the mind to process information. Bradley Cooper takes the drug and writes an entire book in four days. He then discovers new mental powers. He can learn new languages, understand mathematics, and investing. The scene shows how improvements in technology can expand the production possibilities frontier even though labor and capital remain fixed. This is a useful scene to show when discussing how economic growth occurs.
Click here to take the quiz: Dirk Mateer – Production Possibilities Quiz