A budget surplus occurs when government receipts exceed government spending

Opportunity cost is objective; therefore, its value does not change as circumstances change

a. True b. False

Answer the following statements true (T) or false (F)

1. The problems of central planning become less complex as an economy grows in size over time. 2. Profits are the primary "success indicator" for firms in a centrally planned economy. 3. Quantitative measures of managerial success, such as production targets or quotas, are highly foolproof and are thus ideal to use in raising economic efficiency. 4. In the circular flow model, households act as buyers in the resource markets.