Population and the Production Possibilities Curve

This activity will enable you to:

• Describe the impact of an increase in population on an economy’s growth

You have read about the production possibilities curve and the impact of present choices on the future growth prospects of an economy.

After reading Chapters 1 and 2 of the textbook, post a response to the following.

• What is the impact of a growth in population on the production possibilities curve (PPC) and future economic growth? Include how it might shift the PPC.
• How are economic resources—their availability and employment—impacted by a growth in population?

Part 2

Farm Subsidies

• Use economic analysis in real-world situations.

You have learned that market systems assist in productive efficiency and efficiency in resource allocation.

In the light of this learning, consider the following. Government intervention in the markets for farming and rental apartments have been adopted in many markets.

Discussion

Post a response to the following:

• Identify and evaluate consequences of government price supports and subsidies in U.S. farming markets.
• Do rent ceiling laws for apartments result in an efficient allocation of apartment units? Why or why not?
• Would the market system,absent of the above government interventions, result in a more efficient allocation in these markets?