Refer to the Above Diagram

question 81

Multiple Choice

Refer to the above diagram.The movement down the production possibilities curve from point A to point E suggests that the production of:

• A)computers, but not bicycles, is subject to increasing opportunity costs.
• B)bicycles, but not computers, is subject to increasing opportunity costs.
• C)both bicycles and computers is subject to constant opportunity costs.
• D)both bicycles and computers is subject to increasing opportunity costs.

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Definitions:

National Defense

Public or governmental efforts to protect a country and maintain national security through armed forces and defense strategies.

Federal Spending

Expenditures by the federal government on programs, services, and operations, including everything from military funding to social security benefits.

Income in Taxes

refers to the portion of individuals' or businesses' earnings that is paid to the government as tax.

Corporate Income Taxes

Taxes imposed on the income or profit of corporations by the government.