When tax revenue ________ outlays is positive, then the government has a budget ________
A) minus; surplus
B) divided by; surplus
C) minus; deficit
D) plus; deficit
E) plus; surplus
A
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Describe how Mexico's development strategy changed from the 1950s to today and how that changed the production location decisions of firms
What will be an ideal response?
If a currency such as the US$ is traded in a competitive market, a(n) ________ in demand for the US$ ________ the price of the US$ in terms of another currency such as the Japanese Yen (¥)
A) increase; lowers B) increase; raises C) decrease; raises D) change; lowers
Using money as a unit of account lowers information costs compared to barter exchanges
a. True b. False Indicate whether the statement is true or false
Two economists are debating whether to remove a tariff on luxury vehicles. They agree that consumers will benefit by $5 billion and that the harm done to domestic businesses and workers will be only $4 billion. One argues that these facts make it obvious that the tariff should be removed. The other disagrees. What would be a likely reason for the second economist to disagree?
A. He or she has a different interpretation of the empirical evidence. B. He or she has different value judgments about the weights that should be put on the benefits and costs. C. There is no good reason because the benefits outweigh the costs. D. He or she is using a different economic model to understand the world.