For the federal deficit to be lowered,
A) the federal government must decrease its spending and increase net exports.
B) the federal government's expenditures must be lower than its tax revenue.
C) the Federal Reserve must reduce the money supply.
D) the Federal Reserve must raise interest rates and lower the required reserve ratio.
B
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At the equilibrium price, deadweight loss is:
a. minimized. b. zero. c. maximized. d. equal to the equilibrium price multiplied by the quantity exchanged.
Economies of scale tend to create natural monopolies.
Answer the following statement true (T) or false (F)
Over the last 50 years, poverty has been:
A. falling, and inequality has been falling as well. B. rising, and inequality has been falling. C. rising, and inequality has been rising as well. D. falling, and inequality has been rising.
Refer to the table. The outcomes of the three possible sets of paired-choice majority votes illustrate the:
A. paradox of voting.
B. inefficiency of logrolling.
C. principal-agent problem.
D. the benefits of majority rule.