Domestic investment – Private domestic savings – Public domestic savings = Trade _________.
a. level
b. balance
c. surplus
d. deficit
d. deficit
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Capital gains are taxed at a different rate than income and this reduces revenues the government receives. All else equal, what would happen if capital gains taxes were eliminated?
A) They would have to be replaced by a consumption tax. B) The government would not be able to spend money on any programs. C) Everyone would have to pay less in taxes. D) The deficit would increase because of lack of revenues.
During 2005-2006 Europe imported more than $70 million worth of U.S. long-grain rice. Who gains from this trade?
A) European rice consumers gain from trade. B) There is no gain from trade. C) European rice producers gain from trade. D) American rice consumers gain from trade.
Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a theater ticket. If the price of one of the tickets is $18
A) Basil will receive $2 of consumer surplus from buying one ticket. B) Anya and Basil will each buy two tickets. C) Anya and Basil receive a total of $26 of consumer surplus from buying one ticket each. No one else will buy a ticket. D) Celeste, Dralon, and Esther will receive a total of $34 of consumer surplus since they will buy no tickets.
If the structural deficit is zero,
A. If the economy goes above full employment, the cyclical deficit will get larger. B. At full employment, the budget is balanced. C. Federal tax revenue equals federal government expenditures at any equilibrium GDP. D. If the economy enters a recession, a budget surplus will result, ceteris paribus.