Within a PPF framework, explain each of the following:. (a) a disagreement between a person who favors more domestic welfare spending and one who favors more national defense spending, (b) an increase in the population, and (c) a technological change that makes resources less specialized.

Explanation:

a. Remember, the PPF (Production Possibility Frontier) framework allows for the selection of a preferred choice as regards budget spending. Hence, in such a situation, it calls for a choice to be made.

b. According to the PPF framework, where there is an increase in the population, it is expected that such change would result in an increase in the labor force capacity; and ultimately leading to an upward shift in the PPF curve. Thereby, increasing the overall production of the economy.

c. Within the PPF framework, a technological change that makes resources less specialized will result also result in an upward shift in the PPF curve.

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