Refer to Figure 34.1. Suppose the production possibilities curve PP₂ represents the U.S. economy and point C represents the combination of goods and services currently being produced. If welfare discourages people from seeking work, the most likely result of eliminating welfare in the United States would be C. By eliminating disincentives to work, the economy could encourage greater efficiency, leading to a movement from point C to a point along the production possibilities curve.

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The Answer of Refer to Figure 34.1. Suppose the production possibilities curve PP₂ represents the U.S. economy and point C represents the combination of goods and services currently being produced. If welfare discourages people from seeking work, the most likely result of eliminating welfare in the United States would be C. By eliminating disincentives to work, the economy could encourage greater efficiency, leading to a movement from point C to a point along the production possibilities curve.