Suppose that the church offers free tuition to Inanda Seminary High School students with a "B" average. In 2020, the church raised the requirement so that fewer students qualified for the scholarship. At the same time, the church increased spending on health care. Suppose that high school education is on the vertical axis and health care is on the horizontal axis of a PPF. These changes a. will cause a shift out of the PPF. b. are an example of incentives C. are an example of a tradeoff. d. will cause a shift in of the PPF.

EBK HEALTH ECONOMICS AND POLICY
7th Edition
ISBN:9781337668279
Author:Henderson
Publisher:Henderson
Chapter2: Using Economics To Study Health Issues
Section: Chapter Questions
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Suppose that the church offers free tuition to Inanda Seminary High School students with a "B" average. In 2020, the church raised the requirement so that fewer students qualified for the scholarship. At the same time, the church increased spending on health care. Suppose that high school education is on the vertical axis and health care is on the horizontal axis of a PPF. These changes

a. will cause a shift out of the PPF.

b. are an example of incentives

C. are an example of a tradeoff.

d. will cause a shift in of the PPF.

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