Deficit spending occurs when
A. Net export spending alters macroeconomic outcomes.
B. Consumers spend less than their income.
C. Investment spending declines.
D. Government spending becomes greater than the tax revenues collected.
Answer: D
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Which one of the following is a characteristic of capitalism but not of communism?
a. private property. b. wage payments. c. technological development. d. use of capital equipment.
The term "fixed input" refers to:
A) inputs to production that do not vary with respect to quality. B) inputs to production that do not vary in price. C) inputs to production that yield a constant or "fixed" marginal product. D) inputs to production, the quantity of which cannot be varied in the short run.
Canada produces MP3 players and lumber, and the marginal costs for the two products are $200 per 1,000 board-feet of lumber and $100 per MP3 player
China also produces these goods, and the marginal costs are $300 per 1,000 board-feet of lumber and $100 per MP3 player. Which country has the comparative advantage in lumber production? A) Canada B) China C) Both countries share the comparative advantage. D) We need more information to answer this question.
The economy can produce 0X and 15Y, 10X and 10Y, 20X and 5Y, or 30X and 0Y. It follows that opportunity cost of 1X is ___Y.
Fill in the blank(s) with the appropriate word(s).