As domestic income decreases, the trade balance:
A. is likely to improve.
B. is not likely to change.
C. is likely to worsen.
D. may improve or worsen depending on the size of the decrease in income.
Answer: A
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Economists consider profit to be
A) a cost of producing goods and services. B) something that should be eliminated by antitrust laws. C) the same as a salary. D) a reward for incurring losses.
In the figure above, what is the equilibrium price and quantity?
What will be an ideal response?
Suppose consumer income increases. If grass seed is a normal good, the equilibrium price of grass seed will
a. decrease, and producer surplus in the industry will decrease. b. increase, and producer surplus in the industry will increase. c. decrease, and producer surplus in the industry will increase. d. increase, and producer surplus in the industry will decrease.
Answer the following statement true (T) or false (F)
1) The size and scope of government inhibit the flow of information to decision makers, leading to inefficient outcomes. 2) The pursuit through government of a transfer of wealth at society's expense is called "rent seeking." 3) The principal-agent problem is a problem for the private sector but does not apply to political decision making. 4) Medicare is the U.S. government's largest unfunded liability. 5) A debt crisis refers to how much government spending exceeds tax revenues in a given year.