The government budget is balanced when tax receipts equal government spending.
Answer the following statement true (T) or false (F)
True
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Capital losses are:
A. the destruction of plant and equipment. B. decreases in the flow of investment. C. decreases in the value of existing assets. D. decreases in the flow of saving.
Which of the following reasons for making drug sales illegal do economists generally endorse?
A. That addictive drugs do not allow for people to learn from the mistake of taking them. B. The harm that addictive drugs do to innocent victims and that they do not allow for people to learn from the mistake of taking them. C. The harm they do to innocent victims. D. The harm they do to people who knowingly take them.
As the aggregate price level in an economy rises, ______.
a. interest rates increase b. consumer demand increases c. exports decrease d. investment increases
The marketing people at Ben and Jerry's Ice Cream Company believe that if they lower the price of their Cherry Garcia flavor ice cream by 25 percent, the quantity demanded will increase by 5 percent. If they are correct in their belief, then
A) the demand for Cherry Garcia is price elastic. B) their total revenue from Cherry Garcia will increase if they lower the price. C) the demand for Cherry Garcia is income elastic. D) their total revenue from Cherry Garcia will decrease if they lower the price.