Which of the following is NOT illustrated by a production possibilities frontier?

If Shawn can produce donuts at a lower opportunity cost than Sue, then

a. Shawn has a comparative advantage in the production of donuts. b. Sue has a comparative advantage in the production of donuts. c. Shawn should not produce donuts. d. Shawn is capable of producing more donuts than Sue in a given amount of time.

A budget deficit exists if government spending ________.

a. is less than tax revenue (government budget surplus) b. is more than tax revenue. c. equals to tax revenue d. it is impossible to have a budget deficit