Refer to Figure 34.1. Suppose the production possibilities curve PP2 represents the goods and services produced in the U.S. economy. If welfare discourages people from seeking work, and laws change so that more people receive welfare benefits, the most likely result would be
A) A movement from point C to point PP2.
B) A shift from PP2 to PP1.
C) A shift from PP2 to PP3.
D) No change from PP2.
Correct Answer:
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A)Increase
A) Shortfall between