Which of the following allows workers to focus on the types of production where they have an advantage?

Tax revenues are transferred from

A) state governments to the federal government. B) local governments to state and federal governments. C) one state government to other state governments. D) the federal government to state and local governments. E) the state and local governments to the federal government.

In the above figure, when disposable income is greater than 600

A) saving is negative. B) the MPC is greater than 1. C) saving is positive. D) the MPS is negative.