After watching the video clip fromAKnight''s Tale, consider the effect of choosing consumption today

versus consumption in the future. Using the PPC as a springboard for your analysis, what effect would

forgoing consumption today in order to "invest" for tomorrow have on future production possibilities?

Now consider the choices our government faces when it has limited tax revenues to fund the unlimited

wants of its citizens. Describe some of the choices the government makes between consumption today

and investment for tomorrow.