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. Georgia's change in spending would be shown as

Question

Quizplus · Accepted Answer

Georgia's decision to increase spending on healthcare while reducing the number of students qualifying for free tuition (effectively reducing spending on college education) would be represented as a movement down along the Production Possibility Frontier (PPF). This is because the state is reallocating resources from one sector (education) to another (healthcare), not changing the total amount of resources or the PPF's capacity.

The State of Georgia Offers Free College Tuition to High