This archive file of ECO 450 Week 1 DQ 1 The Basics includes the answers to the following questions:

Analyze the relationship between the production possibilities curve and the circular flow diagram. Discuss how the change of production possibilities curve affects the circular flow diagram. Provide an example to support your response.

Compare and contrast federal government expenditures, state and local government expenditures, and financing government expenditures. Suggest a total of three actions that should be taken to reduce the level of federal government spending.