Question

Explain how each of the following situations would affect a nation's production possibilities curve. a. A law is passed whichmakes community college tuition-free for all us. citizens. b. An unexpectedly mild spring results in a bumper crop of citrusfruit in both Florida and California.c A change in immigration laws significantly increases the number of immigrant workers entering the country. d. Theamount of time that unemployed workers can collect unemployment insurance is increased from 26 weeks to 96 weeksduring a recession, resulting in workers remaining unemployed for a longer period of time. e. An innovation indesalinization technology allows for the more efficient conversion of salt water to fresh water. f. A radiation leak at anuclear power plant results in the long-term evacuation of a 10,000 square-mile area, which significantly reduces thenation’s productive capacity.

Answer 1

Answer:

a. The production possibility curve(PPC) moves up and to the right because of increase in human skills resulting in enhanced production and output.

b. Due to bumper crop PPC moves up and to the right.

c. Due ton increased workers entering into the country PPC moves up and to the right ( increased output)

d. The workers are already unemployed hence it does not shifts PPC

e. Due to efficiency to convert salt water into fresh water output increases. PPC moves up and to the right.

f. Decreased productive capacity results in PPC shifting down and to the left.