The government has a budget deficit if
A) its total revenues are equal to its total expenditures.
B) its total revenues are less than its total expenditures.
C) its total revenues are greater than its total expenditures.
D) the money supply is less than total expenditures.
Answer: B) its total revenues are less than its total expenditures.
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Because of the quantity and quality of its resources, the U.S. has an absolute advantage in the production of many goods and services. Does this imply that the U.S
cannot benefit from trading with a developing country that has less productive ability? Why or why not?
If citizens of a country are not saving much, it is better to
a. force citizens to save. b. reduce investment. c. have foreigners invest in the domestic economy than no one at all. d. prevent opportunities for citizens to buy capital assets abroad.
Ceteris paribus, if the French decide they want to drink more Chinese-grown tea, this causes the ________ Chinese currency to ________.
A. supply of; decrease B. demand for; increase C. demand for; decrease D. supply of; increase
If a nation's Lorenz curve lies on the 45 degree line of income equality, then
A) more of the nation's income is received by the lowest 25 percent of families than by the highest 25 percent. B) every household's income level is different. C) more of the nation's income is received by the highest 25 percent of families than by the lowest percent. D) the income received by each 25 percent of families is 25 percent of the total income.