In comparison to a government that runs a balanced budget, when the government runs a budget deficit
A) business investment will fall. B) the equilibrium interest rate will fall.
C) household savings will fall. D) none of the above
A
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Economics promotes which of the following as the way to make the best decision?
A) Continue an enjoyable activity up to the point where its marginal benefit equals its marginal cost. B) Continue an enjoyable activity until it is no longer enjoyable. C) Continue an enjoyable activity until you cannot afford to pursue it. D) Continue an enjoyable activity as long as you do not have to pay for it.
Criteria for an optimum currency area include all the following except
A) fiscal transfers. B) similar business cycle patterns. C) extensive trade with each other. D) a common language.
According to the law of diminishing marginal utility, the marginal utility curve is ____
a. vertical b. flat. c. upward sloping. d. downward sloping.
Economic profit
a. does not exist in competitive markets. b. provides an incentive for investors to undertake risky projects. c. motivates entrepreneurial innovation. d. does all of the above. e. is both b and c.