If the government runs a deficit, the total amount of government debt is...
What will be an ideal response?
increasing
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Which of the following correctly identifies the difference between the demand for labor and the demand for final goods?
A) The demand for labor is fixed over time, whereas the demand for final goods changes according to changes in tastes and preferences. B) The demand for final goods is fixed over time, whereas the demand for labor changes according to the changes in tastes and preferences. C) The demand for final goods is derived from the demand for labor, whereas the demand for labor is independent of the demand for final goods. D) The demand for labor is derived from the demand for final goods, whereas the demand for final goods is independent of the demand for labor.
The government raises gasoline taxes as part of the price of gasoline and receives more tax revenues. However, after five years, the government discovers that revenues from the gasoline tax have declined. This situation would be most likely to occur if
A) the long-run elasticity of supply was much greater than the long-run elasticity of demand. B) the demand for gasoline was inelastic in the short run, but elastic in the long run. C) the long-run elasticity of demand was greater than the long-run elasticity of supply. D) the demand for gasoline was perfectly inelastic in both the short run and the long run.
The most powerful tool unions have at their disposal when bargaining with management is
A) the Taft-Hartley Act. B) the ability to strike. C) the secondary boycott. D) the power of pure competition.
Data on real and nominal interest rates of one-year U.S. T-Bills show that, over the past twenty years,
A) the nominal rate has always been less than the real rate. B) whenever the nominal rate rises, the real rate falls, and vice versa. C) the nominal rate has varied, but the real rate has not. D) the real rate has varied, but the nominal rate has not. E) the real rate has always been less than the nominal rate.