Which statement describes an event that would shift the nation’s PPC to the right?
Nation X is a nation in South America. It is a beautiful island nation surrounded by clear blue sea on all sides. Nation X is known for being a safe country with low crime levels. Last year, nation X elected its first female president, Daniela Bertolini. Bertolini’s focus on affordable higher education and health care is the main reason for the public support she enjoys. Within three months of coming into office, Bertolini passed regulations that made college education available to students from low-income families. In December, Bertolini was voted the best South American president in an international poll. However, she is not the first female achiever to make nation X proud. In February, astronaut Andrea Martinez became the first South American woman in space.
Answers
Answer:
business start-up rate was found to have a high correlation with people's perceivedopportunities (0.88) and with the GEM Opportunity Perception Index (0.79)--whichfactors in perception of positive opportunity in a person's country to start a business, thecapacity (skills and motivation) to pursue the opportunities, the level of respect forentrepreneurial efforts by others in the society, and the level of resentment against thosewho do well in an entrepreneurial venture).We could use this question to discuss factors not mentioned in the GEM ConceptualModel that might contribute to business/job formation and ultimately to higher GDP. Onefactor that usually comes up in such a discussion is creativity of ideas. This can generate alively discussion about how the study could have measured for 'creativity'. Students mightalso mention demographic characteristics of the country, such as median age. Using BillGates as a model, you can expect many students to believe in the notion thatentrepreneurial ventures are generally started by young adults. They might point out afteryou show the graphs below that Japan has a median age of almost 40 years compared to34.3 for the U.S. Also, the percentage of the population under the age of 15 in the US is22%, compared with Japan at only 15%. Additionally, students may raise the issue ofeconomic stability. Given the unprecedented economic growth experienced in the U.S. inthe latter part of the 20thcentury, they may want to use economic stability as a moderatingvariable.SOURCE: GEM 1999 UK Executive Report
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Among the events or statements mentioned in the question,the passing of the regulation leading to affordable college education for low income families can possibly lead to a rightward or outward shift of the Production Possibility Curve(PPC).
Explanation:
- An outward or rightward shift of the PPC basically indicates an increase in the overall production level of the goods and services produced by any particular country or country, thereby implying an enhancement of the productive efficiency or capacity in the country or the economy.
- One of the major reasons or attributes of higher production of goods and services and higher efficiency and productivity of the existing resources or factor endowments in the economy, is better education and training level of the existing and potential workers and employees in the country or economy.
- In this case, if Bertolini emphasizes and invests more on providing affordable college education to the low income families and households,it will expectedly generate more skilled,knowledgeable and equipped work or labor force in the future which could possibly expand the productive capacity or efficiency of the country or economy as a whole.
- Therefore, affordable college education would expand the number of qualified and eligible employees and workers in the economy potentially leading to higher human resource endowments thereby, accelerating the overall production of goods and services in the economy and potential economic growth.This can be portrayed or illustrated by a rightward or outward shift of the PPC of the given country.