Production curve - Essay Example

Production Possibilities Curve Production Possibilities Curve Based on the production possibilities curve: a)If a country uses all of its resources on health care, it will produce 15 units of health and 0 units of education. b) In the event that a country uses all of its resources on education, it will produce 24 units of education and zero (0) units of Health. c) Initially, the country is producing 11 units of health and 16 units of education. Producing 5 more units of education would mean giving up some units of health produced (opportunity cost).

From the PPC, the opportunity cost of producing 5 more units of education is 7 units of Health. The country would have to give up 7 units of health in order to produce 5 more units of education. Distribution of the Health Care and Education That Gets Produced Despite showing the possible combinations of output that can be produced using a given quantity of resources, the production possibilities curve does not show the amount of each product, that is, it fails to tell us what amount of health or Education should be produced and who should receive them and in what proportions.

Health care and education are two essential public goods that any government must achieve a balance in their supply to the public. As such, there is need to device a clear way of allocating resources effectively to both products (health and education) in such a way that the provision of these essential goods to the public is not compromised. Despite the fact that production possibilities frontier does not show how much of a good should be produced and who should receive the goods and in what amounts, it shows how much of a good must be given up to produce more of the other.

This when combined with other social factors is very crucial in making effective decision regarding resource allocation. For the country presented above, it devotes its resources to producing health and education. Based on its production possibilities frontiers, the switching cost increases as we move down the curve, that is, the government has to give up 7 units of health in order to provide more education to the public. Having known that more units of health has to be traded off to produce more education, the government can determine the efficient level of output that could ensure that it supplies maximum amount of both goods to the public.

The government could decide to sit down and decide to increase the supply one of the goods or both without involving the public. However, this would not be an effective decision because it shall not have factored in what the public really feels is underprovided and what they feel should be done. In order ensure efficient allocation of resources, the government should conduct a robust research on the state of education and health across the country and try to get public opinion on what they feel is underprovided.

This would enable efficient decision-making that is in line with public demand. Therefore, blending public opinion with informed decisions of policymakers based on facts would ensure efficient resource allocation of available resources to the production of health and education. St. Leo has six fundamental core values: respect, excellence, community, personal development, responsible development and integrity. All these crucial values together with critical thinking interplay to produce responsible individuals who can make wise decisions on matters affecting human life.