A budget surplus is the:
A. amount of money a government spends beyond the net revenue it brings in.
B. amount of net revenue a government brings in beyond what it spends.
C. total amount of money that a government owes.
D. total amount of money that a government receives from a tax increase.
B. amount of net revenue a government brings in beyond what it spends.
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Tom Searchinger, a senior attorney at the Environmental Defense Fund, observed that generous farm subsidies have encouraged farmers to produce more corn and more wheat. How does this affect the market for fertilizer?
A) The supply of fertilizer increases. B) The demand for fertilizer increases. C) The supply of fertilizer decreases. D) The demand for fertilizer decreases.
Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qd = 20,000 - 200P where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. Suppose Kate enters the market first and chooses her output before Alice. What is the difference in Kate's profit when she enters the market first compared to when Kate and Alice choose their outputs simultaneously?
A. When Kate enters the market first, her profit is $13,333.33 higher. B. When Kate enters the market first, her profit is $5,000 higher. C. When Kate enters the market first, her profit is $1,111.11 higher. D. When Kate enters the market first, her profit is $3,888.89 lower.
If the price elasticity of demand is elastic, then:
a. Ed < 1. b. there are likely a large number of substitute products available. c. an increase in the price will increase total revenue. d. consumers are s not very responsive to a price increase.
If a firm's expected marginal product of capital exceeds its tax-adjusted user cost of capital, the firm will
A. not change its investment spending on capital goods. B. increase its investment spending on capital goods. C. reduce its investment spending on capital goods. D. increase the tax-adjusted user cost of capital.