Consumers concentrate on public choices rather than private choices, because information and the time required to acquire and digest it are scarce

Refer to the above figure. A unit tax of $2 has been placed on the good. Which of the following statements is TRUE about the vertical distance between S1 and S2?

A) The distance is less than $2. B) The distance is $2. C) The distance is more than $2. D) The distance cannot be determined with the information given.

Economic growth appears on a production possibilities curve as

A) the curve shifting out away from the origin. B) the curve shifting in toward the origin. C) a change in the slope of the curve. D) the points outside the production possibilities curve.