If the federal government brings in $1.1 trillion in tax revenues and spends $0.7 trillion, the government has a budget:
A. deficit of $0.4 trillion.
B. surplus of $0.4 trillion.
C. deficit of $1.8 trillion.
D. surplus of $1.1 trillion.
B. surplus of $0.4 trillion.
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Voluntary exchange results in mutual gains.
Answer the following statement true (T) or false (F)
The consumer price index (CPI)
A) compares the cost of the typical basket of goods consumed in period 1 to the cost of a basket of goods typically consumed in period 2. B) compares the cost in the current period to the cost in a reference base period of a basket of goods typically consumed in the base period. C) measures the increase in the prices of the goods included in GDP. D) is the ratio of the average price of a typical basket of goods to the cost of producing those goods.
A monopolist faces the least price-elastic demand curve because:
a. the consumers have only one place to buy the good. b. the monopolist produces a standardized product. c. the monopolist undertakes a huge expenditure to produce the product. d. the monopolist supplies to an insignificant portion of the market. e. the monopolist produces an absolutely necessary good having close substitutes.
In the short run, a competitive firm has a marginal product of labor, MPL = 5L-0.5. The output price is $10 per unit and the wage is $7 per hour. The short-run labor demand curve for the firm is
A) 5L-0.5. B) 15L-0.5. C) 35L-0.5. D) 50L-0.5.