The fact that every dollar that the government spends or transfers must ultimately be provided by the taxes and user charges it collects plus government borrowing is known as the
A) government balance sheet constraint.
B) government budget constraint.
C) tax collection constraint
D) user charge constraint.
B
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Present value analysis suggests that the real rate of return on Social Security is
A. around 10% for workers of all income levels. B. roughly 3% for high-income earners and negative for low-income earners. C. more than 10% for high-income earners. D. roughly 3% for low-income earners and negative for high-income earners.
Regarding economic models, which of the following statements is NOT true?
A. An economic model is a simplified representation of a theory or part of a theory. B. An economic model can provide clear answers for policy makers. C. An economic model can clarify an important economic problem. D. An economic model can show three-variable diagrams.
In a competitive equilibrium all these relationships hold but one. Which one?
A) Nd=Ns B) Y=G+C C) G=T D) w=z
Some nonprice determinants of supply are:
A. prices of related goods, technology, prices of inputs, expectations, and the number of sellers. B. consumer preferences, the price of the good, and prices of related goods. C. expectations of sellers and number of buyers in the market. D. prices of related goods, technology, and consumer preferences.