Question

The Policy: Work on your own (graded) proposing a new government program that will hire engineers to develop a newer way of producing electricity that emits fewer pollutants. The President is interested in the trade-offs that the licy will change those trade-offs. He is just interested in the trade-off between two "goods"- a clean environment and the quantity of industrial output. Your briefing of the President will cover the following issues/questions. Be sure to write your answers the same way that you would explain to the President in your briefing. 1. Draw the production possibilities frontier. What do you suppose determines the shape and position of the frontier

Answer 1

Mr. President Sir, we discuss here various aspects related to the choice of the new program that would produce new electricity. Sir, It Is a fact that whenever there is production of electricity, there is industrial residue or pollutants that are omitted, which is always a concern. However, since we have the technology that would produce lesser pollutants, we are less worried about it right now. However, Sir, there are some other aspects we need to consider.

Answer (1) :

                                             Sir, this is the Production possibility Frontier Diagram or curve, which would give us an idea of the difference in the level of our choice between the two goods we are more concerned about in this new program, when it is implemented. In the diagram here, OA represents the level of electricity output at the current scenario and the level of polluted residue that it omits which is repressed by OB . Here, we must know that OB is only a representative estimation, and the actual percentage of pollution could be much higher. The nature or level of the level of pollution depends on the methods or the technology that is being implemented by the company in the production process.

Answer (2) : If we now focus on the new method of production, then we will have a definite higher level of electricity output , which is shown here by the points OC . Here is OC will be definitely much higher than OA owing the newer and better method of production. But Sir, accordingly we are bound to have a higher level of pollutants being emitted. We expect a comparatively lesser degree of pollutants being omitted owing to the nature of the new method or technology that would be used, however, there will be an increased level for sure. We have depicted the increased level of OD. Hence PC is the production possibility curve. Now Sir, the choice we need to make is , are we ready to sacrifice or let the level of pollution increase to get the higher output of electricity.

Answer (3) : Since Sir, we have two contras tic opinions on the desired output, we need to reconsider our decision here. Since the Red’s favor a higher productivity, they would definitely put more emphasis on the implementation of this new program. They may also be behind you when you stand up for the next election and you will for sure get their votes. But Sir, we also have the Blues, who are totally opposite in their views, they want a cleaner environment. Sir, they want to get the pollutants removed at the cost of introduction of new technology which should be able to reduce the already existing level of pollution. Whereas Sir, our new technology, although not by much, but will increase the pollution level. This will be totally opposed by the Blues. We must understand Sir, that the common people want more electricity, but not at the cost of their lives. Hence, the Blues would be able to easily convince the people against you in the election hours. Therefore, it is advisable to re-think on the implementation of this program

Answer (4) :Sir, there is another very important aspect we must consider. It has been brought up that this new program is planned to be brought up by cutting the finances granted to the public universities, which Sir, is a decision that may be not good from the political perspective. People are anyway not happy by the performance of the public universities. They desire more Government funding for the university to improve their condition. When the general public would know that the funding done to the public Universities are being further cut down, and that too, to finance a program, that will impact their health by producing more pollution for the environment, there is bound to be a huge protest. Therefore Sir, It is highly advisable not let this program go though.