Suppose that the government of Smallville spends $2 trillion in 2020 and receives tax revenues of $1.5 trillion in that same year. Which of the following is TRUE?
A. Smallville has a budget deficit of $0.5 trillion.
B. Smallville has a trade deficit of $0.5 trillion.
C. Smallville has a budget surplus of $0.5 trillion.
D. Smallville has a trade surplus of $0.5 trillion.
Answer: A
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If the price elasticity of supply is 0.75, it would imply that a _____
a. a 100 percent increase in price would increase the quantity supplied by 75 percent b. doubling of the price would increase the quantity supplied by 175 percent c. 50 percent increase in price would increase the quantity supplied by 25 percent d. 75 percent increase in price would increase the quantity supplied by 100 percent e. 120 percent increase in price would increase the quantity supplied by 90 percent
Moving along the inelastic portion of a demand curve, a large percentage change in price leads to a smaller percentage change in quantity demanded
a. True b. False Indicate whether the statement is true or false
Throughout the period from 1996 to 2010, U.S. Real GDP growth has been
A. constant. B. declining. C. steadily increasing. D. fluctuating.
A nominal quantity is measured:
A. in terms of current dollar value. B. in physical terms. C. using the consumer price index. D. by indexing.