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Refer to Figure 34

Question 38

Multiple Choice

  Refer to Figure 34.1.Suppose the production possibilities curve PP<sub>2</sub> represents the goods and services produced in the U.S.economy.If the current welfare system 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 PP<sub>2</sub>. B) A shift from PP<sub>2</sub> to PP<sub>1</sub>. C) A shift from PP<sub>2</sub> to PP<sub>3</sub>. D) No change from PP<sub>2</sub>. Refer to Figure 34.1.Suppose the production possibilities curve PP2 represents the goods and services produced in the U.S.economy.If the current welfare system 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.

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