Refer to the above figure. As the real national income expands ...

[mpobi80]

Refer to the above figure. As the real national income expands from Y2 to Y3,
 
  A) tax revenues fall. B) a budget deficit occurs.
  C) government transfers rise. D) a budget surplus occurs.

Question 2

When there is a building that is used for production, but no one has clear property rights to it
 
  A) this is known as dead capital and causes no production.
  B) this is known as dead capital and causes efficient production.
  C) resources are guided to their best use by the invisible hand.
  D) this is known as dead capital and causes inefficient production.

[peter]

Answer to Question 1

D

Answer to Question 2

D

[mpobi80]

Thanks for the timely response, appreciate it

[frankwu0507]

Great answer, keep it coming