Budget surplus
What will be an ideal response?
an excess of total government tax revenues over total government outlays
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What is the effect on the price and quantity of wooden desks of a rise in the price of wood?
A) The equilibrium quantity of wooden desks increases and the equilibrium price falls. B) The equilibrium quantity of wooden desks increases and the equilibrium price rises. C) The equilibrium quantity of wooden desks decreases and the equilibrium price falls. D) The equilibrium quantity of wooden desks decreases and the equilibrium price rises.
If a production possibilities frontier is bowed out (concave to the origin), then production occurs under conditions of
A) constant opportunity costs. B) increasing opportunity costs. C) decreasing opportunity costs. D) infinite opportunity costs. E) uncertain opportunity costs.
During a "flight to quality"
A) the spread between Treasury bonds and Baa bonds increases. B) the spread between Treasury bonds and Baa bonds decreases. C) the spread between Treasury bonds and Baa bonds is not affected. D) the change in the spread between Treasury bonds and Baa bonds cannot be predicted.
Denmark is an importer of computer chips and adds a $5 per chip tariff to the world price of $12 per chip. Suppose Denmark removes the tariff. Which of the following outcomes is not possible?
a. More Danish-produced chips are sold in Denmark. b. More foreign-produced chips are sold in Denmark. c. Danish consumers of chips become better off. d. Total surplus in the Danish chip market increases.