--%>
Assignment Help - homework help

Affects the location of the production possibilities curve

Explain how, if at all, each of the following affects the location of the production possibilities curve?

E

Expert

Verified

a. Standardized examination scores of high school and college students decline.

b. The unemployment rate falls from 9 to 6 percent of the labor force.

c. Defense spending is reduced to allow government to spend more on health care.

d. A new technique improves the efficiency of extracting copper from ore.

(a) Assuming scores indicate lower skills, then productivity should fall and this would move the curve inward.

(b) Should not affect location of curve.  Production moves from inside the curve toward frontier.

(c) Should not affect location of curve.  Resources are allocated away from one type of government spending toward another (health care).

(d) The curve should shift outward as more production is possible with existing resources.

   Related Questions in Business Economics

  • Q : Checkout problem A grocery store chain

    A grocery store chain is considering ways to improve the performance of the waiting lines at their checkout stands. A heavily trafficked checkout stand is monitored for 120 min. In that period, 60 customers have their groceries rung up, and depart from the store. The

    		•
  • Q : Explain how Entrepreneurs are

    Explain how Entrepreneurs are risk-takers?

    		•
  • Q : Describe Quasi-public goods Describe

    Describe Quasi-public goods?

    		•
  • Q : Comparison between EVA and Ratio

    Comparison between EVA and Ratio Analysis: EVA helps in measuring the economic performance of the company. It is the profit earned by the firm less the cost of financing the firm’s capital. It shows that the shareholders gain when the return fro

    		•
  • Q : Individual sellers and buyers in

    Both individual sellers and buyers within perfect competition: w) can affect the market price through their own individual actions. x) can affect the market price by joining along with some of their competitors.  y) have to take the market price as a specified. z

    		•
  • Q : What are the dependencies in U.S. and

    What are the dependencies in U.S. and World Trade?

    		•
  • Q : Introduction of the term Control

    Give a brief introduction of the term Control Principle?

    		•
  • Q : Mixed Economy Define the term Mixed

    Define the term Mixed Economy and also state their advantages and disadvantages?

    		•
  • Q : Introduction of the term Cost of

    Give a brief introduction of the term Cost of retained earnings?

    		•
  • Q : Barter - Efficiency and the Gains from

    Relative to other systems, economies in that people exchange goods or resources directly along with other people for other goods or resources without using money like a usual denominator rely relatively heavily upon: (i) barter. (ii) specialization. (

    		•