Cost and Benefit
Discussion
Aside from technology, labor and capital factors, production possibility frontier also affects the outcome of production possibility when two or more goods were given as outputs assuming that all the inputs were used efficiently. It is represented by be the curve in a chart when the two products were put into graph. (See example below).
(Investopedia.com N.D.)
Recent events posed an effect in this curve dramatically, the job improvement outlook in the United States have improved since the 2008 economic crash. As of the last part of 2011 and this quarter of 2012 the unemployment rate went down to 8.3% which is equivalent to 200,000 new jobs (Kurtzleben, Danielle February 27, 2012). This development would greatly improve the production output; logically speaking workforce determines the amount of products that can be generated which in return contributes to the overall GDP increase. The job opportunity costs affect and therefore predicts larger production outputs that will drive the economy and the good news is economic growth begets higher standard of living for most of the citizens. It’s like a domino effect and the real benefit can be realized by how the lives of the people have improved. Economic growth is a major factor that will cause to shift the slope of production possibilities frontier, just as job opportunities increases the results will manifest on increase of production output thus, everything shall be held at constant move (Freeeconhelp.com March 7, 2012).
Costs and Benefit
The current immigration policy has three basis of granting visa to enter the United States one is to live as a permanent resident, to work or study and through illegal entry. By the year 2005, there are about 35 million immigrants living in the Unites States, 30% of which are illegal aliens and only 3% are considered temporary settlers. Each type of immigrants whether legal or illegal all are subject to a set of behavioral restrictions and admission policies.
Critics argue on the fact that the influx in numbers of illegal immigrants can bring high cost on economy and this is because of lower local wages and the rising expenses for public health and services including education. When the cost remained at ceiling levels, the restriction for illegal immigrants would be strengthened as far economy is concern. Generally, immigration adds income to the country by efficiently utilizing domestic resources. Because of the difference in the immigrant types legal or illegal, the income earning ability is predetermined by skills family size and access to public which creates an economic impact as a whole. In other terms, although immigrants contributes extra income to the U.S. economy to the point of pushing down wage standards for other workers, the country gains by means of increase in labor supply and helps raising productivity of resources which compliments labor. The more the workers the more land, capital and natural resources can be exploited. For example each are of land in cultivation can be expected to generate more output because of the number of added population of consumers (Hanson, Gordon H. April 26, 2007).
Investopedia.com (N.D.) PPF Graph: Production Possibility Frontier – PPF Web Retrieved March 7, 2012 from http://www.investopedia.com/terms/p/productionpossibilityfrontier.asp#axzz1oSeMbWgS
Kurtzleben, Danielle (February 27, 2012) 012 Job Gains: This Time, It's Different Web Retrieved March 7, 2012 from http://www.usnews.com/news/articles/2012/02/27/2012-job-gains-this-time-its-different
freeeconhelp.com (March 7, 2012) hat causes shifts in the production possibilities frontier (PPF)? Web Retrieved March 7, 2012 from http://www.freeeconhelp.com/2011/07/what-causes-shifts-in-production.html
Gordon, Hanson H. (April 26, 2007) The Economic Logic of Illegal Immigration Web Retrieved March 7, 2012 from Council on Foreign Relations, The Bernard and Irene Schwartz Series 2007. http://www.google.com.ph/url?sa=t&rct=j&q=what%20are%20the%20costs%20and%20benefits%20of%20possible%20changes%20to%20current%20immigration%20legislation%20for%20legal%20workers%2C%20illegal%20workers&source=web&cd=1&ved=0CCIQFjAA&url=http%3A%2F%2Fwww.cfr.org%2Fcontent%2Fpublications%2Fattachments%2FImmigrationCSR26.pdf&ei=qvVWT7GyDeOUiAfKwPi6DQ&usg=AFQjCNEH_n8oj23aWPfpThhDvPp57hBzPA&cad=rja
