Question

post test: free market and businesses

ppc shifts left	ppc shifts right

• an epidemic wipes out one-third of the countrys population.
• private businesses come together to sponsor college education for low-income students.
• educated and skilled workers begin migrating to other countries on a large scale.
• the government builds an extensive network of highways to facilitate cargo transportation.

Explanation:

Analyze factors causing a leftward shift in the PPC

• An epidemic wipes out one-third of the country's population (reduces labor resources).
• Educated and skilled workers begin migrating to other countries on a large scale (reduces human capital/labor resources).

Analyze factors causing a rightward shift in the PPC

• Private businesses come together to sponsor college education for low-income students (increases human capital/labor quality).
• The government builds an extensive network of highways to facilitate cargo transportation (increases physical capital/infrastructure).

Answer:

PPC Shifts Left	PPC Shifts Right
Educated and skilled workers begin migrating to other countries on a large scale.	The government builds an extensive network of highways to facilitate cargo transportation.