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 : Changing rates of Appreciation and

    Elucidate the changing rates of Appreciation and Depreciation?

  • Q : Resource payments correspond to

    Explain the foundation of economics where society’s material wants are Resource payments correspond to resource categories?

  • Q : Founder of modern economics The person

    The person along with, arguably, the top claim to the name “founder of modern economics”: (1) John Stuart Mill. (2) Karl Marx. (3) John Maynard Keynes. (4) Joan Robinson. (5) Adam Smith. Hello guys I wa

  • Q : How do you account for the dominant

    How do you account for the dominant role of corporations in the U.S. economy?

  • Q : Need of the Economic Efficiency

    Economic efficiency for society needs which the: (i) opportunity costs of all goods be at their lowest possible values. (ii) maximum probable benefits are acquired for given costs. (iii) greatest possible net benefits are squeezed through available re

  • Q : Determine the monetary prices while

    Dividing monetary prices from each other yields: (v) nominal prices. (w) relative prices. (x) subjective prices. (y) absolute prices. (z) transaction prices. Hello guys I want your advice. Please recommend some vie

  • Q : Illustrate major economic flows that

    Illustrate major economic flows that link U.S. with nations.  Provide an example to illustrate each flow.  Explain the relationship between the top and bottom flows.

  • Q : Market system & a command economy try

    Contrast how a market system and a command economy try to cope with economic scarcity?

  • Q : Speculation and intermediary operations

    Transaction costs tend to be decreased, prices to consumers are classically stabilized and lowered, and economy-wide efficiency is generally improved through: (1) rigid wage and price controls. (2) central planning that fosters monopo

  • Q : Elucidate Participants in international

    Elucidate Participants in international trade of U.S. and World Trade?

©TutorsGlobe All rights reserved 2022-2023.