A federal budget deficit occurs when:
a. there is deflation
b. federal government purchases exceed net taxes.
c. there is inflation.
d. aggregate demand is greater than aggregate supply.
e. aggregate supply is greater than aggregate demand.
b
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A new cattle feed has been found to increase the amount of milk each cow produces. Which of these is a likely impact in the market for milk, if this cattle feed is used by most of the dairies?
a. A rightward shift of the supply curve for milk b. An increase in the demand for milk c. A decrease in the quantity demanded of milk d. A leftward shift of the supply curve for milk e. An increase in the price of milk
The burden of a tax is mainly borne by the buyer if:
a. the supply of the good is perfectly price elastic. b. the supply of the good is relatively price elastic. c. the demand for the good is relatively price elastic. d. the demand for the good is relatively price inelastic. e. the demand for the good is perfectly price elastic.
Archie can paint 5 backyard fences or repair 2 cars in 8 hours, while Austin can paint 4 backyard fences or repair 2 cars in 8 hours. Identify the correct statement
a. Archie is relatively better in repairing cars. b. Archie is relatively better in painting fences. c. Austin is relatively better in painting fences. d. Archie and Austin are equally good in painting fences. e. Neither Archie not Austin are good in repairing cars.
The point where diminishing marginal returns has begun to affect production is best characterized by the point where the:
A. marginal product curve begins to be negatively sloped. B. total product curve flattens out. C. average product curve begins to be negatively sloped. D. marginal product curve equals the average product curve.