--%>
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 : Define Operating income approach

    Describe briefly Operating income approach?

    		•
  • Q : Least probability of competitive market

    The competitive market system is least probable to be allocatively unproductive as a result of: (w) externalities and public goods. (x) cutthroat competition and the outsourcing of low-wage jobs to less grown countries. (y) the underproduction of a go

    		•
  • Q : Describe what do you mean by European

    Describe what do you mean by European Union (EU)?

    		•
  • Q : Distinction between Component cost and

    Describe briefly Distinction between the term Component cost and Composite cost?

    		•
  • Q : Problem on Infrastructure The state

    The state legislature has voted to develop a grant-in-aid policy to try and induce local communities to devote more resources to improving their infrastructure. Town O = Has an operating budget of $2 million; currently spends a tot

    		•
  • Q : Individuals self-interests and broader

    A natural harmony among individuals serving their own self-interests and the broader interests of society was the main theme of the theories of __________, although this concept was not accepted through _________. Determine the correct answer from given options: (w) K

    		•
  • Q : How will the goods and services be

    How will the goods and services be produced?

    		•
  • Q : Risky forms of production to gain

    Entrepreneurs: (w) undertake risky forms of production to gain uncertain profits. (x) obtain interest payments for their services. (y) are usually overcompensated for their innovations. (z) receive virtually all their wealth by inheritance.

  • Q : Local expenditures and receipts for all

    Elucidate the Local expenditures and receipts for all local governmental units in 1996?

    		•
  • Q : Example of public goods Drinking at a

    Drinking at a public water fountain is: (w) a public good because anyone may drink from it. (x) results in a negative externality because others can’t drink from this at similar time. (y) a positive externality because you are benefiting by other’s provisi

    		•