The federal government
a. runs a deficit when tax revenues are greater than government purchases.
b. runs a surplus when tax revenues are smaller than government purchases.
c. runs a deficit when tax revenues are smaller than government outlays.
d. runs a surplus when tax revenues are greater than government purchases.
e. runs a surplus when tax revenues are smaller than transfer payments.
C
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Suppose a bank has $200,000 in deposits, a reserve ratio of 10 percent, and reserves of $45,000. This bank has excess reserves of
A) $155,000. B) $25,000. C) $10,000. D) $5,000.
Refer to the table above, which gives five points on a nation's PPF. The production of 7 units of X and 28 units of Y is
A) impossible given the available resources. B) possible but leaves some resources less than fully used or misallocated. C) on the production possibilities frontier between points c and d. D) on the production possibilities frontier between points b and c.
Refer to above figure. What is the revenue gain or loss for Europe as a whole (including taxpayers)?
What will be an ideal response?
When product A is a substitute for product B, the cross-price elasticity of demand for products A and B will be _____
a. unity b. negative c. positive d. decreasing e. increasing