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

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If welfare is eliminated, it is likely that more people will seek work since they will no longer have access to welfare benefits. This could lead to an increase in production possibilities and a movement from point C (the current level of production) to a point on PP₂ (the production possibilities curve for the US economy). Therefore, the most likely result of eliminating welfare in the United States would be a movement from point C to a point on PP₂.