Suppose that in 2020 the average citizen's federal tax bill is $12,466, and total federal spending is $10,824 per person. In 2020, the federal government will have
a. a budget surplus.
b. a budget deficit.
c. horizontal equity.
d. vertical equity.
a
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Refer to Table 13-2. What is the output (Q) that maximizes profit and what is the price (P) charged?
A) P = $55; Q = 5 cases B) P = $50; Q = 6 cases C) P = $45; Q = 7 cases D) P = $40; Q = 8 cases
A lender who is worried that its cost of funds might rise during the term of a loan it has made can hedge against this rise by
A) buying futures contracts on Treasury bills. B) selling futures contracts on Treasury bills. C) buying call options on Treasury bills. D) increasing the amount of money which it lends.
In the short-run, following the opening of trade
A. groups tied to declining sectors of the economy will suffer from lower returns. B. workers will suffer from lower wages, but landowners will benefit from higher rents. C. workers in the country can change jobs but will receive the same wage. D. gross output remains constant.
According to economist Paul Romer, economies seeking high economic growth must
A. encourage consumption by households. B. drastically lower their standards of living. C. invest in knowledge. D. reduce their population growth by adopting a one-child policy.