Hello, can you help me explain this? Within the PPF framework, explain each of the following: (a) a disagreement between a person who favors more domestic welfare spending and one who favors more national defense spending; (b) an increase in the population; and (c) a technological change that makes resources less specialized.
Hello, can you help me explain this?
Within the
(a) a disagreement between a person who favors more domestic welfare spending and one who favors more national defense spending;
(b) an increase in the population; and
(c) a technological change that makes resources less specialized.
(a)
The Production Possibility Frontier is the locus point of all the different combinations of the two goods that an economy can produce while efficiently and completely utilizing the resources as well as the factors of production of the economy. Thus, the economy can be efficient when it produces at the PPF and when the output is below the PPF, it is known that the economy is operating inefficiently. The locus point above the PPF is presently unattainable and will be attainable when the economy grows.
When there is a disagreement between the people who value the domestic welfare spending and who favor the national defense spending, it will cause the locus point on the PPF to move along the same PPF curve between more for domestic welfare funding and national defense spending.
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