Multiple Choice
The state of Georgia offers free college tuition to high school students with a "B" average. In 2007, the state raised the requirement so that fewer students qualified for the scholarship. At the same time, Georgia increased state spending on health care. Suppose that college 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) will cause a shift in the of the PPF.
C) are an example of incentives
D) are example of a tradeoff.
Correct Answer:
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