If the fiscal year begins without a budget and Congress fails to pass continuing resolution, then:
A. the president has the right to raise the debt ceiling.
B. federal agencies operate on the basis of the previous year's budget.
C. the interest rate paid on the national debt automatically increases.
D. the federal government shuts down.
Answer: D
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Why do economists tend to create models in diagrammatic form?
A. Diagrams distort reality, and theory is an attempt to avoid reality. B. Because they are unable to construct physical models of their theories. C. Economic reality can only be represented in diagrams. D. Most economists like to draw as much as possible. E. All of these responses are correct.
In derivative markets, trade takes place in
A) assets such as bonds or common stock that derive their value from the value of the companies which issue them. B) assets whose rates of returns must be derived from information published in financial tables. C) assets that derive their value from underlying assets. D) assets which are not allowed to be traded on organized exchanges.
A tax wedge causes
A. consumer prices to equal producer prices. B. producer prices to rise above consumer prices. C. consumer prices to separate from producer prices. D. all prices to fall.
The academic calendar for a university is August 15 through May 15. A professor commits to a contract that binds her to a teaching position at this university for this period. Based on this? information, the short run for the professor
A. will be the nine month period between August 15 and May? 15; any time period longer than this will be long run for her. B. will be the time period between August 15 and December? 31; any time period longer than this will be long run for her. C. will be the calendar year between January 1 and December? 31; any time period longer than this will be long run for her. D. will be the time period between August 15 of the current year and August 14 of the following? year; any time period longer than this will be long run for her.