Let’s say you’re some

type of a hunter gatherer and you’re trying to figure

out how much of your time to spend hunting and how much

of your time to spend gathering. So let’s think about the

different scenarios here and the tradeoffs

that they involve. And just for

simplicity we’re going to assume that when you’re

talking about hunting, the only animal

around you to hunt for are these little rabbits. And when we’re talking

about gathering, the only thing you can gather

are some type of berries. That’ll keep our conversation

a little bit simpler. So let’s think about

all of the scenarios. So first, let’s call this

first scenario Scenario A. And let’s say–

so let’s call this the number of

rabbits you can get and then let’s call this

the number of berries. Let’s do this column as

the number of berries that you can get. So if you were to spend your

entire day going after rabbits, all your free time

out– making sure you have time to

sleep, and get dressed, and all those type of things. Let’s say that you can actually

get five rabbits, on average, in a given day. But if you spend all

your time getting rabbits you’re not going to have

any time to get berries. So you’re going to be

able to get 0 berries. Now let’s say that you were

to allocate a little bit more time to get berries and a little

bit less time to get rabbits. So we’ll call that

Scenario B. We’ll call scenario B the reality

where you have enough time to get 4 rabbits on average. And when you do that,

all of a sudden you’re able to get 100 berries. And when we do these

different scenarios, we’re assuming that

everything else is equal. You’re not changing

the amount of time you have either

hunting or gathering. You’re not changing

the amount of sleep. You’re not changing your

techniques for hunting rabbits, or hunting berries,

or you’re not somehow looking to do other

things with your time. So all other things are equal. And the general term for

this, and it sounds very fancy if you were to say

it in a conversation, is ceteris paribus. Which literally means– so any

time someone says, oh ceteris parabus, we assume

this variable changes or whatever else–

they’re saying we’re assuming everything

else is being held equal. So ceteris means

all other things. You’re probably

familiar with et cetera. It’s the same word, essentially. Other things in paribus,

other things equal. So when you’re going

from Scenario A to Scenario B you’re not

changing the amount of time you’re sleeping. You’re not changing

somehow the geography where you are in a dramatic way. You’re not changing the tools

you use or the technology. Everything else is equal. The only variable

you’re changing is how much time you

allocate to finding rabbits versus finding berries. So let’s do some more scenarios

assuming ceteris paribus. So let me do Scenario C.

You could, on average, have enough time to get 3 rabbits. But if you get 3 rabbits

then all of a sudden you will to get– or if

you’re only getting 3 rabbits, you’re now able to

get 180 berries. And let’s do a couple more. I’m going to do

two more scenarios. So let’s say Scenario D, if

you reduce the amount of time you spend getting rabbits

so you get 2 rabbits, now all of a sudden you

have enough time on average to get 240 berries. And then, let’s say you

spend even less time hunting for rabbits, on average. Then you have even

more time for berries. And so you’re able

to get to 180 berries and I’ll do one

more scenario here. So let’s say Scenario F– and

let’s call these the scenarios. Scenarios A through

F. So Scenario F is you spend all your

time looking for berries. In which case, on

average, you’re going to be able to

get 300 berries a day. But since you have

no time for rabbits you aren’t going

to get any rabbits. So what I want to

do is plot these. And on one axis I’ll have

the number of rabbits. And on the other axis I’ll

have the number of berries. So let me do it right over here. So this axis, I will call

this my rabbit axis, rabbits. And we’ll start. That will be 0. And then this will

be 1, 2, 3, 4, and then that will be 5 rabbits. And then in this axis

I will do the berries. So this right over here,

let’s make this 100 berries. This is 200 berries. And then this is 300 berries. And so this is my berries axis. Now let’s plot these points,

these different scenarios. So first we have

Scenario A. Maybe I should’ve done all these

colors in that Scenario A color. Scenario A, 5

rabbits, 0 berries. We are right over there. That is Scenario A. Scenario B, 4

rabbits, 100 berries. That’s right over there. That’s 100 berries. So that is Scenario B. Scenario C, 3

rabbits, 180 berries. 3 rabbits, 180. Let’s see this would be 150. 180 will be like

right over there. So 3, if you have

time for 3 rabbits you have time for about

180 berries on average. So this is Scenario C. And then

Scenario D we have in white. If you have time for 2 rabbits,

you have time for 240 berries. So that is right around there. So this is Scenario D. Actually, a little bit lower. So this would be 250, so 240 is

a little bit lower than that. So it’ll be right over there. That is Scenario D. Scenario E, if you

have time for 1 rabbit, you have time for 280 berries. So that gets us

right about there. That is Scenario E. And then finally

Scenario F. You are spending all of your

time looking for berries. You have no time for rabbits. So all of your time for

berries, no time for rabbits. 0 rabbits, 300 berries. That’s right over there. So this is Scenario F. So what all of these

points represent, these are all points– now this

is going to be a fancy word, but it’s a very simple idea. These are all points on

you, as a hunter gatherer, on your production

possibilities frontier. Because if we draw

a line– I just arbitrarily picked

these scenarios. Although I guess you could on

average get 4 and 1/2 rabbits on average, on average

get 3 and 1/2 rabbits, and then you’d have a

different number of berries. So these are all points on

the different combinations between the trade offs

of rabbits and berries. So let me connect all of these. Let me connect them in a

color that I haven’t used it. So let me connect them. And do you see– this

should just be one curve. So I’ll do it as a dotted line. It’s easier for me to

draw a dotted curve than a straight curve. So this right over here,

this curve right over here, represents all the

possible possibilities of combinations of

rabbits and berries. I’ve only picked

certain of them, but you could have a

scenario right over here. Maybe we could call

that Scenario G, where on average the amount of

time you’ve allocated, on average you would

get 4 and 1/2 rabbits. So some days you would get 4

rabbits and every other day you would get 5

rabbits, so maybe it averages out to 4

and 1/2 rabbits. And then maybe it

looks like you would get about 50 berries

in that situation. So all of these

are possibilities. You don’t have to just jump

from 4 rabbits to 5 rabbits. Or maybe in this scenario

you’re spending 7 hours and in this scenario

you spend 8 hours. But you could spend

7 hours and a minute, or 7 hours and a second. So anything in

between is possible and all of those possibilities

are on this curve. So these five scenarios,

actually these six scenarios that we’ve talked

about so far these are just scenarios

on this curve. And that curve we call,

once again– fancy term, simple idea– our production

possibilities frontier. Because it shows all of

the different possibilities we can do, we can get. 3 rabbits, and 180 berries. 2 rabbits and 240 berries. What we cannot do is

something that’s beyond this. So for example, we can’t

get a scenario like this. So this right over here

would be impossible Let me scroll over to

the right a little bit. Let me scroll, see

my scrolling thing. OK, so this right over

here is impossible, this point right

over here where I’m getting 5 rabbits

and 200 berries. If I’m getting five rabbits,

I’m spending all my time on rabbits. I have no time for berries. Or another way to think about

it, if I’m getting 200 berries I don’t have enough

time to get 5 rabbits. So this point is impossible. This point would be impossible. Any point that’s on this side

of the curve is impossible. Now any point that’s on

this side of the curve, you can kind of view

it as inside the curve, or below the curve, or to

the left of the curve– all of these points right

over here are possible. All of these points

right over here are– these points, for

example, it is very easy for me to get 1 rabbit and 200 berries. So that right over

there is possible. Now, is that optimal? No, because if I were

to really work properly, I could get many more berries. Or I could get more rabbits. If I have 200 berries, I

could get more rabbits. Or if I’m concerned, if

I only want one rabbit, I can get more berries. So this is possible. All of the points down

here are possible. But they aren’t optimal. They are not efficient. So the points in here, we’ll

say that they are not efficient. Maybe somehow I’m not using

my resources optimally to do this type of thing,

when I’m over here. Or maybe I’m just not

being optimally focused, or whatever it might be. If you’re talking about

a factory setting, when you’re talking

about maybe deciding to make one thing or

another, then maybe you just aren’t using the

resources in an optimal way. Now all the points on the

frontier– these are efficient. You’re doing the

most you can do. Right now we’re not

making any judgment between whether any

of these possibilities are better than any

other possibility. All we are saying

is that you are doing the most that you can do. Any of these things,

you are making the most use of your time.

How are you going to get half a rabbit?

That reminds me of my kitty, who caught a mouse, ate half and left the remainder for us to find, so we could lavish pride on her for being such a clever cat.

I just thought it was worse than anything I'd ever seen, and I'm a paramedic. I've seen really disgusting things. But none more disgusting than half a mouse lying on the floor.

oh okay

what program does khan use for his videos any idea?

I think this video that is showing college work is basically common sense because if you spend more time playing video games less time you have to study… My point is that kids could understand this from 6-12 grade

the best way to learn !!

8:33 – 8:38 It does not really show all the possibilities we can get

"You have no time for Rabbits" – The best way to study microeconomics. 🙂

1:40

"Not changing the amount of time hunting rabbits or hunting berries"

"hunting berries"

"berries"

lol wut?

thanks for the video,needed that..need more on the supply curve and demand cure,the equilibrium.thanks

Microeconomics test tomorrow. Whee.

Ahhh my ppc is straight.

your explanation is so cool, my english is not so good, and my bachelor is literature, but your video helps me a lot to under my master degree class, thank you so much!!!!!!!

how the hell do you get half a rabbit?

Hola amigo! Muy buen video! Aunque por favor dígame cómo usted consigue conejos cuatro y medio?

you say outside the curve is impossible because you have the same resources, but you could get into that section by improving the factors of production (capital, enterprise, land and labor), as an economist looking at goods we were told increasing the quality or quantity of the factors of production can mean that the curve goes to the right. i know you said that the person has the same tools in each scenario because you want to look at it from a mathematical view but i just want to know if what im am saying about an economic view is write

How to download these videos??

This seems EASY compared to what my friend's been telling me LATEly. I never heard of a Misery Index in my life. Tribal Assets either.

Although I have almost no idea what a Misery Index is, I find it easier to understand than tribal assets.

does PPF have to be curved? what defines if it curves convace or convex

what program do you use?

ne gevşek gevşek konuşuyon amk

Or you could set traps for the rabbits and pick berries all day.

What kind of heartless creature would hunt down rabbits…

how is he getting the number of berries? Is he just making them up?

I love you

I put PPF curve on my naan bread to dip in my butter chicken curry. So spicy. Mmmm.

hi… when is the graph straight and when is it curved?

why should we go to university if there is khan academy

What program is he using for this presentation?

BTW Thank you

my teacher told me to make a ppf out of T=400 – 2C and i have no fucking idea what he's talking about.

I have failed in microeconomics 5 times during my college. this is my last attempt if I don't pass I would have to kill myself ffs. my last hope is you khan academy

One little correction my friend, you can't assure that the optimal solution is on the frontier of this constraint since you don't know all the constraints of the system, e.g. if there is a constraint on the demand, which frontier is under the frontier of this capacity constraint then the optimal solution will be under the production possibilities frontier. The only case in which you can categorically assure that the optimal solution is in this frontier is in systems where there are no any other constraints. Regards.

I will do the berries xD

Is it just me or is he really good writing and drawing using a mouse.

Economics videos coming soon, leave a sub!

Khan academy you ARE BEST

Thanks khan academy

Why have you decided on a 20 berry decrease every time you allocate more time to getting berries? I don't get why hunting for 3 rabbits instead of 4 would only get you 180 instead of 200…

This video is very helpful for me thanks to khan academy

it is good to learn economics from a former hedge fund guy.

Please upload videos on managerial economics!. 😀

you should upload videos on accounting and taxes/the irs. and how to prepare taxes on all sorts of forms. Thanks.

Also uploading videos on investing too. Thanks.

1 rabbit is worth 20 berries.

Amen, seek The one and only God Jesus Christ who is the only way to escape Hell.Tomorrow might be too late.

Could you please do a video about what happens to the electronic money the fed creates? It doesn't make sense to me that the money is created, yet the treasury still owes it…

is it just me or does this guy sound like Obama?

can i use these videos to study for the ap microeconomics test and the macro economics test?

Good Job Sir 🙂

4 and a half rabbits?? How is that possible. Hmmm.

Gerçekten farklı bi anlatım 🙂

why do always two entities are taken for possibilities frontier ?

I love the way he says "berries."

The purple zone is deemed inefficient use of resources

how do you calculate the max use of resources? Do you research and handle the instructions to workers?

can you add the subtitles Vietnamese?

The 'A' in the video is of different color than the '5' and '0' and it's eating me up inside!!!

HELP!!!!!!!

but does anyone know how he got 100 berries. I thought the answer was one

Growth of resources and improvement in technology can cause a rightward shift in the production possibility frontier .

Ceteris paribus, sounds lika spel from harry poter.

being forced to take this stupid class for my engineering electives. fall asleep after every page. help

So let me get this straight, the curve is always fixed between the maximum rabbits and berries. There no way I can go on the other side of the curve.

korean subtitle is very poorly done and the sync? is awwwful. Other than that.. smooth as always

Am I the only one who likes the way he says "berries"?

Here is an article that uses the trade offs with production possibilities curve . Two key concepts that make corporate change possible – http://go.shr.lc/2wCU9sj via @commdiginews

i used these videos before for class now i use them to sleep! multi purpose! awesome

Love khan academy

Khan University

isn't it called production possibility curve?

He is talking like stewie:Family guy

Thanks a lot………it is really very helpful 😃

I'm thinking this man should be called "Mr know all"

Aren't the units on both x and y axis meant to be same?

Ahh.. That's freaking confusing, huh

Anyone knows, why?

viewer from Bangladesh….very effective to learn….I am a fan of Khan Academy as usual 😀

pls we need ana arabic translation.. we need it somuch

Am I the only one that sees this looking just like diminishing returns? You would think that the fewer rabbits he collects the more berries he would have time to get. But in the diagram the fewer rabbits he collects its the fewer berries he collects in oppose to his previous collection. When he collects 3 rabbits he collects 80 berries more than the previous amount of berry collection and when he collects 2 rabbits he collects 60 more than the previous, when he collects 1 rabbit he collects 40 more than the previous, it's actually reducing. Am I right?

I'm watching these for my Macroeconomics class, but I'm watching it on Double Speed and I'm dying.

Thank you!

watching this in 2018.. I'm taking micro at the moment. I just want to say, I love your videos! They are so helpful. Thank you so much!

The information in this guy's videos are spot on, but when he repeats ONE WORD FIVE TIMES because he's writing it, it makes me a little batty.

wow thank you

Why are the distances between each point different instead of consistent? I guess I don't get how they aren't consistent.

salman khan is the best tutor in the world… i apreciate their teaching style… thanks khan academy…

very good! Thanks a bunch. ??

thank you dude hi to anyone from eco 1002

when to draw a straight line and when to draw a curved line?

I will never forget it in my whole life

I want learn economics from basics plz give some guidelines how to start

Does it matter if the rabbit and berries are exchanged on the axis?

NO TIME FOR BERRIES!

How about I have 1000 berries because I'm scared of RABBITS and animal violence is bad ?

I don't know why, but none of his videos have any audio for me……..

I love how childish the examples are of objects that Khan does comparisons with. There is no complex fluff, just what you need to know. Thank you so much Khan Academy for another great video!

Can I use this for Grade 12 eco, If not are their any suggested pages?

I should just be home schooled with Khan academy

keep in mind, "Production Possibility Frontier"

Is also called "Production Possibility Curve"

Not sure why, but yea…

Tom is a full-time lecturer at a private higher education institution and is considering a career in carpentry. He wishes to pursue a career in carpentry (a childhood dream) which he has studied part-time and is now equipped to take on clients. In his current position he earns a rate of R1000 per day and if he were to pursue a career in carpentry he would earn R800 per day. Due to the flexibility of the employment conditions at the higher education institution he works for, Tom can negotiate the number of days he works at and will receive a rate of remuneration based on the number of days worked.

Question 1 1.1 Construct a production possibility frontier to illustrate Tom’s earnings potential between the two careers if initially he was not working as a carpenter, then he worked one week per month, then two, then three and finally four weeks per month (assuming only four weeks in a month). (5 marks)

1.2 Discuss the underlying assumption of the shape of the above drawn diagram and comment on how

likely this could be true with respect the above scenario. (6 marks)

1.3 Discuss a factor that would lead to an outward shift of the diagram drawn in 1.1 and illustrate this on

the diagram drawn. (5 marks)

1.4 Discuss a factor that could lead to an inward shift of the curve drawn. (4 marks)

1.5 In the labour market for carpenters, the current market clearing wage rate is R800 per day. With the aid of a diagram, discuss the welfare effects of government intervention in the form of legislation that sets the minimum wage rate for a carpenter at R1000 per day.

HOW DO I SOLVE THIS ON A PPF?

this is like my uni lectures but 1000 times more concise

-Hunter Gathers

-Berries

Bizonacci is that you?What software is this?

I love Kahn academy! Been here from the start!