The economy operates at its full productivity which, allows for economic growth. During a specified period of time, outputs can be produced without sacrificing the output of either good. The combination represented on the chart provided shows the priorities of the economy between two categories. Priorities can go either way based on the direction and or condition the economy is currently in. For example; producing more capital goods and fewer consumer goods or vice versa.
Using a production possibility curve measures the maximum combination of outputs that can be achieved from a given number of inputs. In the case of HealthCare vs. Education the inputs based on the data chart provided showed a variety of ways to distribute. Very few outcomes provided a balanced or well distributed conclusion. If a country uses all of its resources on health care a total of zero units can be produced. This leaves 15 units available to produce education.
There is no balanced outcome for either subject but a happy medium can be obtained. If a country uses all of its resources on education a possible 24 units could be produced but leaving zero resources to produce units of health care. If a country is currently producing 11 units of health care and 16 units of education, the opportunity cost of producing 5 more units of education would be a total of 4 units.
Using the data chart on Units of Health Care and Units of Education, it shows that a production of 11 health care units would also leave recourses to produce 16 units in education. Based on the overall information provided even if we decided to produce 9 units in health care and 19 units in education the difference between option one and two would be 5 or 9 units. Based on this information the better outcome would be to produce 11 units of health care and 16 units of education.
In reference to the term “Laissez- faire” or leave well alone; the economy is best served by taking all aspects into consideration based on the needs and/or demands of the people. No matter what decision is made, we will have to just let things play out. In time, if and when changes are needed we can take action within an adequate timeframe in order to keep the flow of the economy and its needs met.