The amount the government budget deficit would be if the economy were at full employment is known as the
A) primary deficit.
B) full-employment deficit.
C) natural deficit.
D) current deficit.
B
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Some people will often remark that the used car market is a counter-cyclical business,meaning that the fortunes of the business tend to move in the opposite direction of the health of the economy
Why might this be true and what conclusion can you make about what kind of a good used cars would be classified as economically speaking?
Your professor loves his work, teaching economics. He has been offered other positions in the corporate world that would increase his monetary income by as much as 25 percent, but he has decided to continue working as a professor. His decision to continue teaching rather than taking other positions would not change unless
a. the marginal cost of teaching increased above the marginal benefit. b. the marginal benefit of teaching increased above the marginal cost. c. the marginal cost of teaching decreased. d. the marginal benefit of a corporate job decreased.
The U.S. is able to maintain a large trade deficit because:
A. it is balanced by a large capital surplus. B. when the business cycle is in a boom, it will be a trade surplus. C. it is balanced by a large capital deficit. D. None of these statements is true.
Suppose you can earn 5 percent on your savings account if you deposit $500 in it. The inflation rate is 3 percent. The opportunity cost of holding the $500 as money is
A) $100. B) $525. C) $80. D) $30. E) $25.