The art of critical thinking teaches us that we must strive to improve the world in whatever ways we can and contribute to a more rational, civilized society. (Foundation for Critical Thinking, 2013). Economist can look at the statistics behind the ‘what’ is needed for a sound economy, but those don’t say to whom or how to apply the ‘what’. In steps the critical thinker. In the following essay, we will discuss idea of whom and how to apply the ‘whats’ required for a successful economy.
When looking at a production possibility curve, you want a more outward slope to be have an effective/healthy economy. There are several things [labor force, amount of resources, and technology] that affect the slope of the production possibility curve (PPC). The following is a simple breakdown of the effects that each have.
1. Labor Force
i. Size of the labor force - The more workers, the more goods that can be produced. ii. Health – Healthier economies have more citizens in the work force as well as stronger workers. iii. Education – Smarter economies create faster, better ways of producing goods.
Note: With an increase in the size, health, or education of the labor force, more products are able to be produced. An increase in products pushes the PPC curve outwards.
2. Quantity/quality of capital/ resources – The more capital/ resource available to produce goods, the more goods that can be produced. “An increase in the quantity/quality of resources shifts the curve outward. (A decrease consequently leads to an inward shift of the PPC.)
3. Technology - Improved technology produces goods faster and more efficiently. Thus, more goods can be produced. Increases/improvements in technology shift the curve outward. (Unknown).
Given these factors, it is imperative that we educate our people, keep them healthy, and stay on the cutting edge of technology in order to have an