Suppose that in 2020 the average citizen's federal tax bill is $11,987, and total federal spending is $12,294 per person. In 2020, the federal government will have

a. a budget surplus.
b. a budget deficit.
c. horizontal equity.
d. vertical equity.


b

Economics

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Default risk arises from the fact that

A) borrowers differ in their ability to repay in full the principal and interest required by a loan agreement. B) the bond price drops when interest rates rise. C) it is inherently riskier to wait for a capital gain than to receive an immediate interest payment. D) interest rates are far more likely to go up than to go down.

Economics

An account period may be:

a. One quarter b. One month c. One year d. All of these

Economics

Distinguish a direct and an inverse relationship. Provide an example of each type of relationship.

What will be an ideal response?

Economics

Other things equal, if the wage rates paid to a firm's labor inputs were to rise, we would expect the:

A. AFC, AVC, ATC, and MC curves all to rise. B. AVC, ATC, and MC curves all to rise. C. AFC and ATC curves to fall. D. MP curve to fall.

Economics