If the government has no debt initially, but then has annual revenues of $20 billion per year for 4 years and annual expenditures of $20.5 billion per year for 4 years, then the government has
A. a budget surplus of $0.5 billion per year and a debt of $2 billion at the end of the 4 years.
B. a budget deficit of $0.5 billion per year and a debt of $2 billion at the end of the 4 years.
C. a budget surplus of $0.5 billion per year and a surplus of $2 billion at the end of the 4 years.
D. a budget deficit of $0.5 billion per year and a budget surplus of $2 billion at the end of the 4 years.
Answer: B
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What will be an ideal response?
A reduction in regulation will shift the aggregate:
a. supply curve leftward. b. supply curve rightward. c. demand curve leftward. d. demand curve rightward.
The shape of the production possibilities curve in the figure above indicates that
A) production of corn is characterized by increasing costs while the production of cloth is characterized by decreasing costs. B) production of both corn and cloth is characterized by increasing costs. C) production of both corn and cloth is characterized by constant costs. D) production of corn is characterized by constant costs and the production of cloth is characterized by increasing costs.
Suppose a farmer in a perfectly competitive agricultural industry rents land that is uniquely productive in the production of a certain crop. In the long run,
A) the owner of the land receives economic rent while the farmer earns zero economic profit. B) the owner of the land earns zero economic profit while the farmer receives economic rent. C) both the farmer and the owner of the land receive economic rent. D) neither the farmer nor the owner of the land receive economic rent.