Refer to the above table. Given the level of investment at $34 billion, zero net exports, and a lump-sum tax of $30 billion, the addition of government expenditures of $20 billion at each level of GDP will result in an equilibrium GDP of:

Resource use is allocative efficient

A) when it is not possible to produce more of one good. B) when we produce goods and services that we value most highly. C) when most resources are fully employed. D) at any point on the PPF. E) at all points either on or within the PPF because all these production points are attainable.

The divergence between money costs and opportunity costs will be greatest in which of the following situations?

A. A university purchases 100 computers. B. A university employs people from town in the cafeteria (the other alternative is to work at a paper mill). C. A university employs otherwise unemployed teenagers to paint crosswalks and curbs. D. A university replaces the roof of the fine arts building.