The accompanying figure shows Becky's daily production possibilities curve for dresses and skirts.The maximum number of skirts that Becky can make in a day is represented by point:

The magnitude of the tax multiplier is smaller than the magnitude of the government expenditure multiplier because

A) a change in taxes does not change expenditures. B) an increase in taxes decreases expenditures. C) a decrease in government expenditure decreases tax revenue. D) a change in taxes does not change expenditures by as much as the same size change in government expenditure. E) a change in taxes creates additional induced taxes.

With a negative income tax featuring an $8,000 minimum level of income and a 20% tax rate, a household earning zero dollars would receive a subsidy of:

a. zero b. $1,600 c. $6,400 d. $8,000