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.

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
ChapterST7: The Economics Of Health Care
Section: Chapter Questions
Problem 6CQ
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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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