Question

Write a short response of approximately 200 words on the following topic:

Ways to Improve the Standard of Living of the Shuswap Nation

The Shuswap Nation is one of the distinct societies of Indigenous Peoples located near Kamloops, BC, which is located on the traditional and unceded land of the Secwepemc. This First Nations community has its own distinct government and economy. Assume that the Shuswap Nation grows cherry fruits (in thousand kilograms) and produces crafts (in thousand units) by using all resources efficiently given the technology. Draw a production possibilities frontier (PPF) for the Shuswap Nation. The Shuswap Nation needs its economy to grow by shifting its PPF upward in order to increase the standard of living. List all possible ways that the Shuswap Nation can shift its PPF upward.

Answer 1

Solution:

Production Possibilities Frontier (PPF) for the Shuswap Nation:

In the above diagram, PP represents the production possibilities frontier for the Shuswap Nation.

For Shuswap Nation, to increase the standard of living and to shift its PPF upward, Shuswap Nation needs to increase the output of its economy. This increase in output can be achieved in many ways, such as:

1. Advancement or Upgradation of Technology:-

If Shuswap Nation can upgrade or advance its technology, then there will be an increase in the output of the economy of Shuswap Nation as advancement or degradation in technology will make it possible to produce more of both cherry fruits and crafts with the same number of resources. As a result, the PPF will shift upward.

2. Discovery of New Natural Resources:-

The Discovery of new natural resources may facilitate producing more of both goods as the new natural resources discovered may increase the efficiency of the production. This will lead to an increase in output, As a result, the PPF will shift upward.

3. Increase in the labor force:-

Due to population growth, there may be an increase in the labor force. This implies more number of workers working than before, This will increase output and there will be an upward shift in the PPF.

4. Skill development of human resources:-

Skill development of human resources increases their mental and physical abilities. Due to this skill development, they can find efficient alternatives for the production of cherry fruits and crafts. An efficient alternative will increase production possibilities. As a result, the PPF will shift upward.

5. Improvement of health care facilities:-

Improved healthcare facilities reduce the possibility of workers taking leave due to health issues. This will increase the total output as with improvement in health care, workers are working more days than before. As result, the PFF will shift upwards.

6. Inflow of foreign capital:-

The flow of foreign capital will bring huge funds which will enable large production and also will bring better management which will increase efficiency. This will enable the economy to increase its total output. As result, the PPF will shift upwards.

An increase in total output leads to an increase in income. Increase in income results in a better standard of living. All the above ways will increase the standard of living of Shuswap Nation.

These were the ways with which Shuswap Nation can grow by shifting its PPF upward to increase the standard of living.