diagram, determine how does the PPF change in response to the following events: Make sure to explicitly indicate what sectors you are representing, and what sort of assumptions each event implies (i.e., a neutral effect vs a sector-biased effect). The latter follows from your assumptions on the factor intensity of the sector you are representing. Increasing skilled migration into the country Imposing taxes on manufacturing (hint: define a two-sector producing economy, manufacturing and services). Decreasing the expenditure on
diagram, determine how does the PPF change in response to the following events: Make sure to explicitly indicate what sectors you are representing, and what sort of assumptions each event implies (i.e., a neutral effect vs a sector-biased effect). The latter follows from your assumptions on the factor intensity of the sector you are representing. Increasing skilled migration into the country Imposing taxes on manufacturing (hint: define a two-sector producing economy, manufacturing and services). Decreasing the expenditure on
Chapter2: Production Possibilities Frontier Framework
Section: Chapter Questions
Problem 3QP
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Using a production possibilities frontier (
Make sure to explicitly indicate what sectors you are representing, and what sort of assumptions each event implies (i.e., a neutral effect vs a sector-biased effect). The latter follows from your assumptions on the factor intensity of the sector you are representing.
- Increasing skilled migration into the country
- Imposing taxes on manufacturing (hint: define a two-sector producing economy, manufacturing and services).
- Decreasing the expenditure on research and development
- Implementation of easier rules for foreign investment
The effects of a pandemic
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