Suppose government spending equals $500 billion, tax revenue equals $450 billion, and the Treasury issues $50 billion in bonds. In this case the government has
A. a budget surplus of $100 billion.
B. a balanced budget.
C. a budget deficit of $50 billion.
D. a budget deficit of $100 billion.
C. a budget deficit of $50 billion.
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If national saving (S) is $100,000, net taxes (T) equal $100,000 and government expenditure (G) is $25,000, how much are households and businesses saving?
A) $25,000 B) $225,000 C) -$25,000 D) none of the above
Firm X pays firm Y $345 for a pollution permit. This expenditure on the part of firm X is considered a __________. Firm Y ends up spending $200 to eliminate some pollution. This expenditure on the part of firm Y is considered a __________.
A. resource cost; transfer B. fixed cost; sunk cost C. market environmental cost; standards cost D. transfer; resource cost E. none of the above
Network externalities create a push toward:
A. perfect competition. B. government deregulation. C. foreign competition. D. natural monopoly.
Most likely, the elasticity of demand for transportation is greater than the elasticity of demand for cars.
Answer the following statement true (T) or false (F)