If tax revenues equal 25 percent of total output and government expenditures equal 20 percent of total output, then there is a:
A. trade surplus.
B. government budget surplus.
C. trade deficit.
D. government budget deficit.
Answer: B
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Exhibit 2-7 Production possibilities curve
For the economy shown in Exhibit 2-7 to operate at point C, it must:
A. be willing to lower the price of grain. B. use its given resources more efficiently than it would at point A. C. experience resource unemployment. D. experience an increase in its resources and/or an improvement in its technology.
Marginal factor cost is computed as
A) total cost of the resource/total amount of the resource being used. B) change in the total cost of the resource/total amount of the resource being used. C) total cost of the resource/change in the amount of the resource being used. D) change in the total cost of the resource/change in the amount of the resource being used.
Which of the following is not a typical attribute of a socialist country?
A. Taxes are very high, particularly on the wealthy classes. B. Production is guided by the price system. C. Government owns some of the means of production. D. Cradle-to-grave security for its citizens.
Refer to the information provided in Figure 20.4 below to answer the question(s) that follow.
Figure 20.4Refer to Figure 20.4. The domestic price of a leather wallet is $20. With free trade the price of a leather wallet is $10 and after a tariff is imposed the price is $15. With the tariff domestic production is
A. 100. B. 150. C. 200. D. 300.