Sunday, August 9, 2009

AP microeconomics help!!!!!?

the question is draw a PPC for US capital and consumer goods illustrating the following scenarios



A) Congress provides more funding for higher education w/more students attending and graduating college



B) New advances in medicine allow for healthier lifestyle



C) US agrees to be part of a world trade agreement that will foster international trade.



D) Unemployment rate increases in economy from 4.2 percent to 5.1 percent of labor force



E) Computer viruses are out of control and efficiency and output in economy fall.



AP microeconomics help!!!!!?





PPC is the same as a PPF which is a production possibilities frontier. It shows all the possible combinations of L and K that would produce the same amount of output. It looks like the thing on this page http://en.wikipedia.org/wiki/Production_...



So put US capital and consumer goods on the y and x axises respectively.



A) increases Capital...because students are capital...therefore the PPC will go higher on the y axis (the capital axis)...that part of the curve will shift out...don%26#039;t change the intersect on the x (goods) axis...



b)...I guess that%26#039;s a capital thing...more people, people are labor...I dunno...you%26#039;re in AP here.



c) increases goods (x) side of PPC



just google production possibilities frontier...you%26#039;ll get more hits than ppc.

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