problem set 1 - Dept of Economics University of Iowa Fall...

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Dept of Economics Fall 2010 University of Iowa Professor Sarah Frank 06E:001:SCB Principles of Microeconomics Problem Set 1 Due at the beginning of class on September 14 1) It is possible to divide everything produced by the United States into two categories: education and everything else. a. Draw the PPF for the United States, putting education on the vertical axis and everything else on the horizontal axis. Explain in words what the PPF represents. Why is it likely to be bowed out? b. Suppose the United States experiences a recession and has a high unemployment rate. How would this show up in the PPF? c. Suppose research in education reveals a new pedagogical approach that helps elementary-aged children learn to read and do math much better. What effect would this have on the PPF? d. What effect would today’s particular combination of education and everything else have on the PPF of the future? 2)
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This note was uploaded on 09/26/2011 for the course 06E 001 taught by Professor Stuff during the Fall '10 term at University of Iowa.

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problem set 1 - Dept of Economics University of Iowa Fall...

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