The budget of an economy is said to be in deficit when:
a. federal outlays exceed revenues
b. federal revenues exceed outlays.
c. anticipated inflation rate exceeds its actual rate.
d. there is a loss of value of a country's currency with respect to one or more foreign reference currencies.
e. anticipated interest rate exceeds its actual rate.
a
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All of the following are characteristics of a battle of the sexes game except
A) each player has a tough strategy and a weak strategy. B) the tough strategy and the weak strategy differ for each player. C) each player prefers the Nash equilibrium corresponding to his or her tough strategy. D) each player prefers the same Nash equilibrium.
In an unregulated, competitive market producer surplus exists because some
A) consumers are willing to pay more than the equilibrium price. B) producers are willing to take more than the equilibrium price. C) producers are willing to sell at less than the equilibrium price. D) consumers are willing to purchase, but only at prices below equilibrium price.
The virtual currency battle between Facebook and Zynga reminds us that:
a. Once a company starts a virtual currency, it is difficult and costly to abolish the currency. For nations, the same is true. Countries, like Greece, that entered the European Monetary Union now find it very difficult and costly to abandon the euro. b. Companies that start virtual currencies can abolish them rather quickly, which stands in stark contrast to countries, like Greece, that entered the European Monetary Union but now find it difficult and costly to abandon the euro. c. Companies that start virtual currencies are like countries, such as Greece, that entered the European Monetary Union. In both cases, it appears relatively easy to abandon the virtual currency and currency area. d. Countries, like Greece, that entered the European Monetary Union now find it relatively easy and inexpensive to abandon the euro. This stands in stark contrast to companies that start virtual currencies and wish to abolish them.
Suppose that aggregate consumption is $1,200,000, aggregate investment is $300,000, government spending is $200,000, the value of exports is $200,000, and the value of imports is $100,000. What is the value of Gross Domestic Product (GDP)?
a. $1,800,000 b. $1,700,000 c. $1,600,000 d. $2,000,000 e. none of the above