2 pages/≈550 words
Mathematics & Economics
The production possibility frontier (Essay Sample)
Defining the production possibility frontiersource..
Production Possibility Curve
Production possibility frontier is a curve which depicts a locus of points that yield maximum returns of a given number of inputs in a production process. Practically, economists use a frontier curve with two inputs so as to bring into the limelight the concept of opportunity costs. Opportunity cost is the next best alternative forgone as a result of one not considering its benefits. Opportunity cost is brought into birth by choice that one has to make due to inadequacy of resources. (Samuelson, 1947) Choice is the decision one makes from given alternatives whose combination is impossible.
Units of Health 11
4 8 12 16 20 24
Units of Education
From the above production possibility frontier, the vertical axis depicts units of Health and the horizontal axis units of Education in a production process of a country. From the above we can deduce that;
A). If a country devolves all of its resources to healthcare, then a total number of 15 healthcare units will be produced and there would zero production of Educational units.
B). If it chooses to devolve all its resources to Education and forego healthcare, then 24 educational units will be produced and zero healthcare units.
C). A country currently producing 11 units of healthcare and 16 units of education and chooses to produce 5 more units of education will forego 4 healthcare units. The opportunity costs of producing the 5 educational units are the 4 healthcare units. That is, to produce an extra 5 units of education, a country foregoes 4 units of healthcare.
Social Justice Implications on the Distribution of Healthcare and Education
Equitable distribution of resources is an ethical issue that is always called for. Citizens of a given state expect to receive social services from the authorities they pay taxes to. Social justice advocates for equity and fairness in the distribution of state owned resources so that all the citizens enjoy them equally. Interpersonal differences such as religion, color, sex, economic status and background should not form any basis for discrimination as justice would be denied and impunity upheld.
Optimal resource allocation should put into consideration the predicament of the minority groups in the society. This includes the low income earning families, the old and other vulnerable groups who experience difficulties in accessing these crucial needs. (Deutsch, 1985) The governing authorities can bridge this gap by putting in place systems that will go a long way alleviating the high levels of poverty and the lower standards of living that have undermined development, and awake to stirring positive growth and development that is both just and equitable.
Healthcare services and facilities can be availed at low cost or with no costs to the low income earning groups in the society. This can be achieved by raising taxes for the rich through a progressive tax system and having the proceeds channeled towards the provision of educational and healthcare facilities to the income earning famili...
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