If government has no debt initially but then annual revenues are $8 billion for 10 years while annual expenditures are $11 billion for 10 years, then the government has a:
A. deficit of $3 billion per year and a debt of $30 billion.
B. deficit of $30 billion and a debt of $3 billion per year.
C. surplus of $3 billion per year and a debt of $30 billion.
D. surplus of $30 billion and a debt of $3 billion per year.
Answer: A
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A firm could gain from cheating on a cartel agreement by doing all of the following except:
A) raising its price above the agreed level. B) lowering its price below the agreed level. C) selling more than its agreed quota. D) increasing production.
The interpretation of the slope coefficient in the model ln(Yi) = ?0 + ?1Xi + ui is as follows:
A) a 1% change in X is associated with a ?1 % change in Y. B) a change in X by one unit is associated with a 100 ?1 % change in Y. C) a 1% change in X is associated with a change in Y of 0.01 ?1. D) a change in X by one unit is associated with a ?1 change in Y.
When an American household purchases a bottle of Italian wine for $100,
a. U.S. consumption does not change, U.S. net exports decrease by $100, and U.S. GDP decreases by $100. b. U.S. consumption does not change, U.S. net exports increase by $100, and U.S. GDP increases by $100. c. U.S. consumption increases by $100, U.S. net exports decrease by $100, and U.S. GDP does not change. d. U.S. consumption increases by $100, U.S. net exports do not change, and U.S. GDP increases by $100.
Figure 3-3
In , if the initial demand for margarine were D1, the impact of a decrease in the price of butter, a substitute good for margarine, would be illustrated as
a.
a shift in the demand curve to D2.
b.
a shift in the demand curve to D3.
c.
a movement downward to the right along the original demand curve D1.
d.
none of the above.