If the structural deficit is zero,
A. If the economy goes above full employment, the cyclical deficit will get larger.
B. At full employment, the budget is balanced.
C. Federal tax revenue equals federal government expenditures at any equilibrium GDP.
D. If the economy enters a recession, a budget surplus will result, ceteris paribus.
Answer: B
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The figure above gives your budget line for magazine and CDs per month. Given that your income equals $60 per month, what is the price of a magazine and the price of a CD?
A) The price of a magazine is $12 per magazine and the price of a CD is $6 per CD. B) The price of a magazine is $5 per magazine and the price of a CD is $10 per CD. C) The price of a magazine is $4 per magazine and the price of a CD is $12 per CD. D) It is impossible to tell from the information given.
Using equations for public and private saving, show that saving must equal investment in a closed economy. Begin with the expression for total saving in the economy
What will be an ideal response?
Suppose an MNC subsidiary buys 100 input units from its parent at a price of $2 each. It has $300 in additional production costs, and sells its 100 units of output for $6 to the MNC. It pays a 25% local profit tax
The MNC sells the output at home for $8, and its cost of producing inputs is $1 . It pays a profit tax of 20% at home on repatriated profits. What is the subsidiary net profit? Assume no selling costs at home. What is the MNC's total profit from the operation?
Which of the following is NOT an antitrust law?
A) the Robinson-Patman Act B) the Smoot-Hawley Act C) the FTC Act D) the Sherman Act