Use the following figure to answer the question below. A point on the production possibilities frontier in the figure above is

An increase in demand for resources fixed or specific to an industry will cause their earnings _____ because those resources cannot be released from other industries.

a. to fall b. to rise by the same rate as for all resources c. to rise disproportionally d. to fall disproportionally

A transfer payment is

a. income that is received but not earned b. income that is earned but not received c. included in GDP to account for the spending on capital depreciation d. part of personal disposable income but not personal income e. always equal to the taxes that the government collects