If the economy were producing at point E and moves to point D,
A. resources will shift from producing capital goods to producing consumer goods.
B. resources will shift from producing consumer goods to producing capital goods.
C. more capital goods can be produced without any sacrifice in consumer goods production.
D. more consumer goods can be produced without any sacrifice in capital goods production.
B. resources will shift from producing consumer goods to producing capital goods.
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A government budget deficit occurs during a budget year when
A) tax revenues > government spending. B) tax revenues < government spending. C) tax revenues = government spending. D) tax revenues + government spending = personal consumption.
What is the difference between positive and normative economics? How can knowledge of positive economics be useful in normative economics?
What will be an ideal response?
If the government desires to raise a certain amount of revenue by taxing a monopoly, an ad valorem tax will
A) generate the same loss of consumer surplus as a specific tax. B) generate a greater loss of consumer surplus than a specific tax. C) generate a smaller loss of consumer surplus than a specific tax. D) generate no loss of consumer surplus.
Refer to the data. National income is:
A. $395.
B. $380.
C. $375.
D. $360.