India's government runs a government budget surplus. If there is no Ricardo-Barro effect, the surplus means that the
A) private supply of loanable funds curve lies to the left of the supply of loanable funds curve.
B) private demand for loanable funds curve lies to the left of the demand for loanable funds curve.
C) private supply of loanable funds curve is the same as the supply of loanable funds curve.
D) private supply of loanable funds curve lies to the right of the supply of loanable funds curve.
E) None of the above answers is correct.
A
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The price elasticity of demand for meat in general is inelastic while the price elasticity of demand for turkey or chicken is more elastic. Why?
A) Turkey and chicken are not red meat. Because they are not the same as other meats, they should have different elasticities. B) Turkey and chicken have many substitutes, such as fish or beef, while meat in general has fewer substitutes. C) Turkey and chicken are inferior goods. D) Turkey and chicken are normal goods.
The owners of sports franchises often complain that free-agency (open bidding for player services) threatens their profitability and thus their long-run viability. Given your knowledge of perfect competition, which of the following is correct?
A) Team owners might be correct in as much as free-agency bids up the price of players so that economic profits from those players equal zero. B) Team owners might be correct in as much as free-agency bids up the price of players so that economic profits from those players is negative. C) Team owners are lying, as free-agent salaries are still much too low. D) Team owners are telling the truth, as free-agent salaries are much too high.
The two sources that contribute roughly 80 percent together of total tax revenues are:
A. personal income tax and payroll tax. B. personal income tax and corporate income tax. C. corporate income tax and payroll tax. D. personal income tax and excise tax.
Marginal benefits are downward sloping when
A. there are no total benefits. B. the slope of the marginal benefits curve is negative. C. total benefits are increasing at a decreasing rate. D. marginal costs are upward sloping.