In developing countries, the government's revenues are:
A. no more limited than in developed economies.
B. limited because even though the government can readily collect taxes, the tax base is too small.
C. limited because of the small tax base and the government's inability to collect taxes.
D. limited because the tax base is too large and the government lacks the institutional ability to collect taxes.
Answer: C
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When a firms "dumps" some of its products in another country, it
A) creates an environmental hazard in the receiving country. B) sells its goods abroad at a price lower than it costs to produce the goods. C) increases the total level of employment in the receiving country. D) is specializing according to comparative advantage.
Refer to Table 2-6. What is James's opportunity cost of making a tricycle?
A) 2 tricycles B) 3/4 of a wagon C) 1/2 of a wagon D) 1/2 of a tricycle
Which of the following would shift the demand curve for gasoline to the right?
a. a decrease in the price of gasoline b. an increase in consumer income, assuming gasoline is a normal good c. an increase in the price of cars, a complement for gasoline d. a decrease in the expected future price of gasoline
Starting with a situation where there is a substantial budget deficit, when tax revenues grow faster than federal expenditures, the government will experience:
a. a balanced budget. b. an increasing national debt. c. a declining budget surplus. d. a declining budget deficit. e. an increasing budget deficit.