Question p21 - curve in because there would be fewer...

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Ryan Wisneski Eco2023 Due: January 12, 2009 Question #4 p. 21 a. A decrease in taxes would most likely drive the demand for certain products up as the consumer would be able to spend the money that they are not paying in taxes. Also more people would be willing to work because they would receive more of the benefits so the production possibilities curve would move outward. b. An increase in government regulation would most likely show a decrease in production possibilities as entrepreneurs would be less motivated to start new companies which would lead to no new creation of jobs and a smaller labor field. c. An increase in military spending would also bring the production possibilities
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Unformatted text preview: curve in because there would be fewer resources available to allocate to production of other goods. d. An increase in college tuition would decrease the production possibilities curve with regards to a specialized work field as there would be less highly educated students graduating but increase the production possibilities in some of the lower income jobs. e. With new technology the production possibilities would shift outward as the level of production would increase as the new technology would decrease the inefficiency of certain production...
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This note was uploaded on 02/19/2011 for the course ECO 2023 taught by Professor Barefield during the Spring '09 term at Tallahassee Community College.

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