Refer to the diagram below. If box E represents government, box C businesses, box D the resource market, and box B the product market, then government purchases of computers, office supplies, and military hardware would be illustrated by arrows:

The marginal propensity to save (MPS) is the

A) fraction of additional income that is saved. B) amount of saving that is later consumed. C) total amount of income that is saved. D) part of consumption spending that does not depend on income.

According to the Heckscher-Ohlin model, the source of comparative advantage is a country's

A) factor endowments. B) technology. C) advertising. D) human capital. E) political system.