Taxes are the only mechanism by which the federal government earns money

Which of the following would NOT allow society to move to point "h" in the above figure?

A) an improvement in technology B) more efficient use of current resources C) an increase in quantity of labor D) an increase in quantity of capital

Could either party do better?

a. Yes, both parties can do better without hurting each other if they cooperated b. Yes, one party can do better, but only at the expense of the other c. No, neither party can do better d. No, each party has its best possible outcome