Suppose that the government goes into deficit in order to help local school districts build better schools. Does this burden future generations?
The benefits of the project accrue not just to the current generation, but also to future generations. By running a deficit, the government spreads some of the cost to future generations as well.
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Give 3 reasons for deviations from IRP. Do these deviations indicate unexploited profit opportunities for investors?
What will be an ideal response?
Adam Smith recognized the benefits from trade based on ____, and David Ricardo recognized the benefits from trade based on ____:
A. Comparative advantage; resource endowments B. Absolute advantage; comparative advantage C. Absolute advantage; resource endowments D. Comparative advantage; absolute advantage
The market for maple syrup is perfectly competitive. Suppose that the market is in long-run equilibrium when the market demand for maple syrup increases. What happens in the short run?
A) Firms will enter the market. B) Some of the existing firms shut down. C) The firms decrease production. D) The firms increase production.
If the CPI is 230 in year 1 and 249 in year 2, what is the approximate percentage change in prices between the two years?
A) 7.6 percent B) 8.3 percent C) 15.7 percent D) 11.4 percent E) 6.0 percent