Using economic efficiency as the standard, most economic models imply that ________ when trying to reduce the debt
A) increasing taxes is preferable to reducing government expenditure
B) reducing government expenditure is preferable to increasing taxes
C) increasing taxes is equally efficient as reducing government expenditure
D) reducing government expenditure is no more effective than increasing taxes
B
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The bowed outward shape of the production possibilities frontier in the above figure indicates that
A) some resources are better suited for producing computers. B) the opportunity cost of producing more computers decreases as more computers are produced. C) computer technology is subject to the principle of decreasing costs. D) All of the above answers are correct.
On the graph above, output is above planned expenditures at point ________
A) A B) B C) G D) H E) none of the above
In economics, "Public Saving" is defined as
a. Saving that is made public by disclosure to the IRS. b. Tax revenue minus government spending. c. National Income minus consumption. d. Deposits made at banks and other lending institutions. e. Investment in a publicly held company.
Gross private domestic investment includes business:
A. purchases of capital goods, all new construction, and purchases of consumer durable goods. B. purchases of capital goods, all new construction, and inventory investment. C. purchases of capital goods, all new commercial construction, and inventory investment. D. purchases of all types of durable goods, all new construction, and inventory investment.