Through war, many of the factories in country 1 are destroyed and many of its people are killed. As a result, the country's
A) production possibilities frontier (PPF) after the war has probably shifted to the right compared to its PPF prior to the war.
B) PPF after the war has probably shifted to the left compared to its PPF prior to the war.
C) PPF after the war is probably the same PPF as before the war.
D) ability to produce goods and services has increased.
E) b and d
B
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When tax revenues minus outlays is
i. positive, the government has a budget surplus. ii. negative, the government has a budget deficit. iii. zero, the government has a balanced budget. A) iii only B) ii and iii only C) i and ii only D) i only E) i, ii, and iii
Private solutions often are not possible due to the costs of negotiating and enforcing these solutions. Such costs are called: a. transaction costs
b. external costs. c. deadweight losses. d. social costs.