The structural deficit is defined as
A. that part of the deficit that is so hard to remove that it is never reduced.
B. the portion of the budget deficit that occurs because the economy is not at full employment.
C. the hypothetical deficit the economy would have under current fiscal policies if the economy were operating near full employment.
D. the actual budget deficit that exists in the economy.
Answer: C
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A firm maximizes profit by operating at the level of output where
A) average revenue equals average cost. B) average revenue equals average variable cost. C) total costs are minimized. D) marginal revenue equals marginal cost. E) marginal revenue exceeds marginal cost by the greatest amount.
If the intended aim of the price floor set in the graph shown was a net increase in the well-being of producers, then positive analysis would have us consider:
A. the policy to be effective if area C is larger than area E.
B. the policy to be effective if area E + B is larger than C +D + F.
C. the policy to be ineffective if area B is larger than area E.
D. the policy to be ineffective if area E + B is larger than A+C+D+ F.
Barter is the exchange of goods and services without the use of money
a. True b. False Indicate whether the statement is true or false
In perfect competition, a profit-maximizing business will expand until its marginal cost equals the market price.
Answer the following statement true (T) or false (F)