Changes

A production possibilities curve is a graph showing the different results that can be produced by the combination of different good, using limited resources.  It is slightly similar to an indifference curve.

A production possibilities curve is a graph showing the different results that can be produced by the combination of different good, using limited resources.  It is slightly similar to an indifference curve.

4. Do you think that government policy should give high priority to the Lorenz curve? Explain the issue that a Lorenz curve addresses, and whether you think that should be a high priority of government economic policy.  

4. Do you think that government policy should give high priority to the Lorenz curve? Explain the issue that a Lorenz curve addresses, and whether you think that should be a high priority of government economic policy.

  I do not think that having the government focus on the Lorenz curve is wise.  It seems a bit too communistic to me.  Having the government redistribute wealth to make everyone more equal? We’ve already seen how that works.  I don’t think America needs to try it for herself.

The Lorenz curve addresses redistribution of wealth. I do not think that it is wise for the government to focus overmuch on the Lorenz curve.  it seems a bit too communistic to me.  Having the government redistribute wealth to make people more equal? The USSR already tried that and everyone knows how that ended.  I don't think that America needs to try it for herself.

5. Look again at Figure A. What is the opportunity cost of shifting production from B to C?  

5. Look again at Figure A. What is the opportunity cost of shifting production from B to C?