--%>
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 : Illustrate Economics for citizenship

    Illustrate Economics for citizenship?

    		•
  • Q : Distribution of endowments 1. We have

    1. We have discussed the importance of resource endowments and institutions for an economy's successful development. a. In this game, what are the resources that make up the endowments, and what defines a given player's endowment o

    		•
  • Q : Why is the problem of unemployment a

    Why is the problem of unemployment a part of the subject matter of economics?

    		•
  • Q : Decreases in opportunity costs of

    The opportunity costs of production and consumption for most resources and goods tend to be decreased by: (w) private monopoly power. (x) price floors. (y) intense competition. (z) price ceilings. Hey friends pleas

    		•
  • Q : Activities of speculators in long turn

    The activities of speculators tend to, in the long run: (w) decrease the volatility of prices. (x) attract legal attention resulting in imprisonment. (y) increase the level and volatility of prices. (z) yield tremendous profits and raise costs to cons

    		•
  • Q : How can we compute operating leverage

    How can we compute operating leverage?

    		•
  • Q : Illustrate Scarcity and choice of

    Illustrate Scarcity and choice of Economic Perspective?

    		•
  • Q : Explain the following from Hull Explain

    Explain the following from Hull, England a news dispatch: “The fish market here slumped today to what local commentators called a ‘disastrous level’—all because of a shortage of potatoes”.

    		•
  • Q : Decentralized a virtue of capitalism

    The idea which a virtue of capitalism is decentralized its decision making emerged while: (1) social philosophers looked for alternatives to feudal kings like economic regulators. (2) Russian imperialism fostered anti-communist sentiment after World W

    		•
  • Q : Categorization of economists for buying

    Assume that you bought a ton of gold in Santiago, and Chile for $450 per ounce and immediately sold all of this in Antwerp, Belgium for $480 per ounce. Therefore economists would categorize your movement as: (i) arbitrage. (ii) scalping. (iii) screening. (iv) speculat

    		•