When tax revenues are greater than government expenditures, the government has a budget
A) crisis.
B) deficit.
C) surplus.
D) revision.
C
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In the aggregate expenditures model, we note that an increase in government purchases G and an increase in lump-sum taxes T of the same amount will have
A. essentially the same effect on equilibrium real GDP, both in magnitude and in direction. B. different effects on real GDP, with the change in G having a larger impact than the change in T. C. the same magnitudes of impact on equilibrium real GDP, though in opposite directions. D. different effects on real GDP, with the change in T having a larger impact than the change in G.
Explain the argument for why taxing externalities is an economically legitimate distortion
What will be an ideal response?
If the calculated price elasticity of demand between two points is -4, demand is
A) inelastic. B) elastic. C) unresponsive to price. D) unit-elastic.
Which of the following is an in-kind transfer payment?
a. Medicaid. b. Social Security. c. unemployment insurance. d. Temporary Assistance to Needy Families.