In Figure 1.1, which labeled point indicates that there are sufficient resources and technology to produce the combination of goods represented by that point?

A concern about crowding out caused by increased government borrowing is that:

A. interest rates on private borrowing fall. B. lower rates of economic growth can result from a decline in business investment spending. C. the federal government may default on its loans. D. foreign lenders find it less attractive to help finance federal deficits.

Technological change is more important to long-run economic growth than changes in capital. The easiest way for firms to gain access to new technology is through

A. wars and civil strife B. foreign direct investment C. health and education D. savings and investment