The above table gives a country's government outlays and tax revenue for 2008 through 2012. During which years did the country have a balanced budget, budget surplus, and budget deficit?
What will be an ideal response?
The country had a balanced budget in 2011 because in that year government outlays equaled tax revenues. The country had a budget surplus in 2008 and 2009 because in those years tax revenues exceeded government outlays. The country had a budget deficit in 2010 and 2011 because in those years government outlays exceeded tax revenues.
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Refer to Figure 12-8. Suppose the market price is $120. Which of the following is true?
A) The firm earns a profit equal to the area A. B) The firm suffers a loss equal to the area A. C) The firm earns a profit equal to the area A + B. D) The firm will break even.
The theory that stock prices reflect all available information and that the future movement of stock prices is unpredictable is called the
a. random walk theory. b. inefficient market theory. c. technical analysis theory. d. charting theory.
Janet is a farmer. Which of the following are included in her human capital?
a. her tractor and what she's learned from experience b. her tractor but not what she's learned from experience c. what she's learned from experience but not her tractor d. neither her tractor nor what she's learned from experience
Suppose farmers in a given market can either grow soy beans or corn on their land. In addition, suppose an increase in the demand for corn causes the price of corn to increase. As a result of the increase in the price of corn, farmers who were already growing corn will earn an:
A. economic profit in the short run. B. economic loss in the short run. C. economic profit in the long run. D. economic loss in the long run.