When government expenditures exceed revenues there is a government budget deficit.
a. true
b. false
Answer: a. true
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A duopoly occurs when ________
A) there are only two producers of a particular good competing in the same market B) there are two producers of two goods competing in an oligopoly market C) there are numerous producers of two goods competing in a competitive market D) the one producer of two goods sells the goods in a monopoly market
Refer to Figure 2-6. If the economy is currently producing at point E, what is the opportunity cost of moving to point D?
A) 10 thousand hammers B) 8 thousand wrenches C) 13 thousand hammers D) 0 wrenches
Though large firms have the knowledge and resources to utilize a better pricing strategy, many choose to use cost-plus pricing. One reason for this is that
A) large firms do not have to maximize their profits because they face little competition from other firms. B) firms often adjust the markup they charge to reflect current demand. C) there is less risk of violating antitrust laws if a cost-plus pricing strategy is used rather than a profit-maximizing pricing strategy. D) the additional revenue that would result from a profit-maximizing pricing strategy is an insignificant fraction of the firms' revenues.
A price floor above the equilibrium price increases the total surplus of the market.
Answer the following statement true (T) or false (F)