The State of Georgia Offers Free College Tuition to High

question 300

Multiple Choice

The state of Georgia offers free college tuition to high school students with a "B" average. In 2007, the state raised the requirement so that fewer students qualified for the scholarship. At the same time, Georgia increased state spending on health care. Suppose that college education is on the vertical axis and health care is on the horizontal axis of a PPF. These changes

• A) are example of a tradeoff.
• B) are an example of incentives.
• C) will cause a shift out of the PPF.
• D) will cause a shift in the of the PPF.

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Definitions:

Producing Units

Entities, either facilities or machinery, involved in the production process to manufacture goods or services.

Economy

The system of production, distribution, and consumption of goods and services in a particular geographic region or country.

Factor Markets

Markets where services of the factors of production (notably labor, land, and capital) are bought and sold.

New York Mets

A professional baseball team based in New York City, part of the National League division of Major League Baseball.