A requirement that the budget be balanced in each calendar year is a misguided overreaction to the fear that in some cases
a. budget surpluses can become too large.
b. budget deficits can become too large.
c. interest rates would rise.
d. interest rates would fall.
b. budget deficits can become too large.
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The key factors in raising standards of living in low-income countries have been increases in
A) capital accumulation and the money supply. B) income and government ownership of resources. C) foreign aid and population. D) technology and knowledge.
The snob effect corresponds best to a
A) negative network externality. B) Giffen good. C) positive network externality. D) bandwagon effect.
Which of the following is TRUE for a monopolistically competitive firm?
A) MR = P B) MR > P C) MR < P D) MR = AFC
The price of pizza falls relative to the price of spaghetti, so people buy more pizza instead of spaghetti. This is an example of responding to:
A. incentives. B. marginal science. C. sunk benefit. D. disincentives.