The production possibilities curve illustrates the basic principle that
a. an economy's capacity to produce increases in proportion to its population.
b. if the resources of an economy are being used efficiently, more of one good can be produced only if less of another is produced.
c. an economy will automatically seek the output at which all of its resources are fully employed.
d. the distribution of income among households is the major determinant of the economic welfare of a nation.
B
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The amount by which the federal government's annual expenditures exceed its annual receipts is the
A) federal debt. B) federal government budget deficit. C) federal government budget surplus. D) federal profit.
Which of the following is true of exports and imports? a. Both imports and exports are added to a nation's gross domestic product (GDP)
b. Both imports and exports are subtracted from a nation's gross domestic product (GDP). c. Imports are added and exports are subtracted from a nation's gross domestic product (GDP). d. Exports are added and imports are subtracted from a nation's gross domestic product (GDP). e. Neither imports nor exports are included in a nation's gross domestic product (GDP).