Explain how each event affects production possibilities (a)…
Explain how each event affects production possibilities (a) The population becomes more educated over time as the number of high school dropouts falls and the number of college graduates rises.This increase both quantity and quality of the resource labor (b) The unemployment rate declines from 7.3 to 4.5 percent of the labor force. Remember, when the number gets smaller it means it’s getting better (c) Businesses and government are unable to solve a major computer problem, thus reducing national output. This means the whole economy is getting smaller (d) Covid concerns reduce production of semi-conductor chips for auto industry slowing auto production (e) The Congress and the President decide to allocate more resources to national defense. This is just changing one good for another while still being efficient (f) A nation participates in increased international trade with other nations of the world. This will make the economy grow