Once a Nation Has Been Producing a Good or Service

question 18

Multiple Choice

Once a nation has been producing a good or service for some time,

• A)its supply curve for that product is vertical
• B)its supply curve for that product is horizontal at the world price
• C)it often develops a comparative advantage in producing that good or service
• D)its moves along its production possibilities frontier and produces more of it
• E)its production possibilities frontier shifts outward

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Definitions:

GDP

Gross Domestic Product, a measure of the economic performance of a country, summing the total value of all goods and services produced over a specified time period.

Federal Government Revenue

The income the government receives from taxes, fees, and other sources to fund public services and goods.

State

Is an organized political community under one government; can refer to a country or a specific government jurisdiction within a country.

Local Government Revenue

The funds collected by municipalities and local authorities through various means such as taxes, fees, and grants, which are used to finance public services and infrastructure.