Economic Problem 8 8 unread replies. 8 8 replies. Read the following scenarios and answer the questions withinthem:
Scenario 1: In Alaska, there is a piece of landon which rare and endangered species of wildlife live. There isalso crude oil on the same piece of land. Use the productionpossibilities frontier model to explain the dilemma posed.
Expound how the production possibilities frontier model canbe used to solve the Alaskan problem.
Scenario 2: Some people believe that the U.S.unemployment rate increases due to the U.S. international tradewith other countries. They think that if the President has all thedaily necessities made in the U.S. and make Americans only buy thegoods produced in America, the unemployment rate will decrease andpeople will have more job opportunities.
Do you agree withthis statement? Why or Why not? . . .