Tax cuts associated with supply-side economics often lead to increased
a. federal budget surpluses.
b. federal budget deficits.
c. foreign trade surpluses.
d. government spending.
b
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The demand for silver decreases, other things equal, when
A) the gold market is expected to boom. B) the market for silver becomes more liquid. C) wealth grows rapidly. D) interest rates are expected to rise.
Year 1 nominal GDP is
A) $200. B) $270. C) $310. D) $390.
Horizontal integration allows firms to do all of the following except
a. take advantage of cost savings due to economies of scale. b. reduce administrative costs. c. create brand identity. d. fully integrate with primary care clinics and acute care nursing facilities.
Bill lives in Montana and likes to grow zucchini. He applies fertilizer to his crops twice during the growing season and notices that the second layer of fertilizer increases his crop, but not as much as the first layer. What economic concept best explains this observation?
a. The law of diminishing marginal utility. b. The law of diminishing returns. c. Return equalization principle. d. The principal-agent problem.