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Assume that South Africa has a production possibilities curve (PPC) that reflects their production of diamonds and gold. Predict the effect of each event below

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Assume that South Africa has a production possibilities curve (PPC) that reflects their production of diamonds and gold. Predict the effect of each event below on the PPC of South Africa by matching the event from the first list (Event/Question Items) to the most likely item on the "Effect on Country X's PPC (Answer Items)" list below. Note that it is at least possible to have the same answer for more than one event). How does a decrease in unemployment affect the PPC of South Africa? A. Movement from a point inside this PPC to a point that's on the PPC How does an improvement in the mining process associated with B. Movement from a point that's on this PPC to a point inside the PPC producing diamonds affect the PPC of South Africa? C. Movement between 2 points, up along the PPC (i.e. toward diamonds) How does a managerial innovation associated with producing gold, an D. Movement between 2 points, down along the PPC (i.e. toward gold) innovation that allows for improved productivity in gold production affect the PPC of South Africa? E. Increase (shift outward) in the PPC that affects both goods How does the migration of laborers from Namibia into South Africa affect F. Decrease (shift inward) in the PPC that affects both goods the PPC of South Africa? G. Increase (pivot outward) in the PPC that affects only diamonds How does an increase in the demand for gold, a change that occurs H. Increase (pivot outward) in the PPC that affects only gold during a period when South Africa is producing at full employment, affect the PPC of South Africa? 1. Decrease (pivot inward) in the PPC that affects only diamonds How does a decrease in the productivity associated with producing J. Decrease (pivot inward) in the PPC that affects only gold diamonds affect the PPC of South Africa? (> How does an increase in unemployment within South Africa affect the PPC of South Africa? How does an increase in the amount of available capital affect the PPC of South Africa? How a decrease in the amount of available land where gold and diamond mining is permitted by law to occur affect the PPC of South Africa

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