If a government budget deficit leads to a higher level of imports, with exports remaining fixed, the result will be a
a. smaller trade deficit.
b. larger trade deficit.
c. smaller surplus.
d. larger surplus.
b. larger trade deficit.
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Jason considers a crystal bowl, a silver dish, and a pewter figurine, each priced $45 at the local gift shop. He chooses the silver dish because according to economic theory,
A. his marginal utility per dollar is greatest. B. his total utility is minimized. C. his marginal utility is equal to his total utility. D. silver costs more per ounce than pewter.
Consider two individuals, Kevin and Harris, who discount delayed utilities with a weight of 1/2 and 3/4, respectively
a) Who between the two individuals gives more weight to things that happen in the future? b) If consuming ice cream gives both Kevin and Harris benefits worth 8 utils instantly and has delayed costs of 15 utils, then comment on whether both individuals will want to consume ice cream. c) If the nearby ice cream parlor is closed for a week, will Kevin and Harris prefer to eat ice cream after a week, given that they have to decide today?
From a purely economic point of view, discrimination is established if: a. black teenagers earn more than white teenagers do
b. all factors are earning an amount equivalent to their marginal revenue product. c. women earn less than men do. d. equivalent factors earn different payments for equal contributions to output.
Which of the following is not a component of aggregate demand?
a. Consumption b. Investment spending c. Government spending d. Real interest rate