If G = $800 billion, tax receipts = $850 billion, and there is an inflationary gap of $100 billion, there is
A. a budget surplus.
B. a budget deficit.
C. not enough information to determine whether there is a budget surplus or a budget deficit.
A. a budget surplus.
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The goal of a perfectly competitive firm is to maximize its
A) normal profit. B) revenue. C) output. D) economic profit.
Compared to a sales tax, a value-added tax is _____
a. easier to calculate b. harder to collect c. easier to apply to investment goods d. easier to monitor
For any pair of nations and goods, if each country has an absolute advantage in the production of one product, it is reasonable to expect that specialization and trade will benefit both countries.
Answer the following statement true (T) or false (F)
Polar Water, a company that delivers bottled water, is considering three investment opportunities. The expected returns for each of the projects are as follows: buying a new delivery van, 12%; computer training for its office staff, 9%; and defensive driving training for its drivers, 8%. If the current interest rate is 7%, the firm should invest in
A. only the purchase of a new delivery van. B. the purchase of a new delivery van and computer training for its office staff. C. all of the projects. D. none of the projects.