The early 1980s "Star Wars" space-based defensive weapons system was an example of _____

Refer to the above figure. Assume that only two goods can be produced in the economy. Which of the following statements is TRUE?

A) Points a, b, and c are all obtainable points of production. B) Points a and b are obtainable points of production. C) Points b and c are obtainable points of production. D) Only point b is an obtainable and efficient point of production.

Which of the following statements best explains the effects of transfer payments and taxes on aggregate spending? a. Transfer payments and taxes affect aggregate spending directly, just as consumption does

b. Transfer payments and taxes affect aggregate spending indirectly by first changing disposable income and thereby changing consumption. c. Changes in the amount of transfer payments and taxes cancel each other and therefore have no influence on any economic variable. d. Transfer payments and taxes affect disposable income but have no effect on consumption. e. Transfer payments affect disposable income, but taxes do not.