Which of the following is true when the federal government is running a budget deficit?
What will be an ideal response?
Government expenditures exceed government revenues.
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If the quantity of loanable funds supplied exceeds the quantity of loanable funds demanded, then ________
A) the real interest rate will rise B) firms will decrease their investment demand C) people will save more D) the real interest rate will fall
This graph shows the cost and revenue curves faced by a monopoly. 
According to the graph shown, if this were a perfectly competitive market, the outcome in the short run would be:
A. Q1, P3. B. The graph is of a monopoly, and therefore there is no way to determine a perfectly competitive outcome. C. Q2, P2. D. Q1, P1.
Queuing is a way to ration goods
A) on a first-come, first-serve basis. B) through prices. C) through the use of political power. D) through markets.
Jennifer is the only employee of her sole proprietorship. She is entertaining the idea of hiring an additional employee. She knows that on her own she can produce 100 units per day
Jennifer figures that Applicant A will help her produce 175 units per day whereas Applicant B will help her produce 155 units per day. Which of the following statements is most accurate? A) Applicant B has a marginal product of 75 units. B) Applicant B has an average product of 77.5 units. C) Applicant A has a marginal product of 75 units. D) Applicant A has an average product of 87.5 units.