b . taxes . c . the private goods and services foregone . d . inflation .
2 . If the economy is currently operating on a point on the production possibility curve for government goods and services versus private goods and services , a . an annual increase in government goods and services can be obtained without any sacrifice of annual private goods and services .
b . it will be impossible to increase annual output of government goods and services . c . a decrease in the annual output of government goods and services will have no effect on the annual output of private goods and services .
d . a decrease in the annual output of government goods and services will allow an increase in annual output of private goods and services .
3 . Government goods and services are usually : a . not rationed by prices . b . sold in markets . c . made available to persons according to their willingness and ability to pay . d . financed by revenue obtained from sales . 4 . Taxes : a . are prices paid for the right to consume government goods and services .
b . are compulsory payments not directly related to the benefits received from government goods and services .
c . never affect economic incentives . d . are used by private firms to raise revenue . 5 . A mixed economy is one in which :