When economists express the deficit, they generally do it as:
A. the total amount the government overspent.
B. a percentage of total GDP.
C. a percentage of the amount of taxes they collect.
D. a partitioned amount based on where the government spent the money.
B. a percentage of total GDP.
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When does a private solution to a negative externality fail to allocate resources efficiently?
What will be an ideal response?
A monopolistically competitive firm is one:
A. of many firms that all sell the exact same product. B. that behaves like a monopolist. C. of many firms that sell products that are close but not perfect substitutes. D. of a small number of firms that sell products that are close but not perfect substitutes.
In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. A decrease in the number of consumers of product X will:
A. increase D, increase P, and increase Q. B. decrease S, decrease P, and decrease Q. C. decrease D, decrease P, and increase Q. D. decrease D, decrease P, and decrease Q.
According to economists, the lack of clear property rights will:
A. remove the proper incentives to invest in the future. B. encourage more incentives to invest in the future. C. lower the costs of investing in the future. D. All of these are correct.