If the economy is growing 3% a year and the government increases the ratio of interest on the national debt to GDP, we may conclude that
A) the output ratio will fall.
B) additional interest payments exceed 3% of GDP.
C) tax revenues will fall.
D) the Laffer curve will be inoperable.
B
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A trade surplus means:
A) the country has positive net savings, which it lends abroad. B) the country has negative net savings, which it lends abroad. C) the country has positive net savings, which it borrows from abroad. D) the country has negative net savings, which it borrows from abroad.
Acme Steel Co produces 1000 tons of steel. Steel sells for $30 per ton. Acme pays wages of $10,000. Acme buys $15,000 worth of coal, which is needed to produce the steel. Acme pays $2,000 in taxes. Acme's contribution to GDP is
A) $15,000. B) $20,000. C) $30,000. D) $45,000.
Uncertainty includes all of the following except ____
a. unknown effects of deliberate actions b. incomplete information as to the type of competitor c. random disturbances d. unverifiable claims e. accidents due to weather hazards
Which of the following is not something that John Maynard Keynes used to describe an economist? a. He must be a mathematician, historian, statesman, and philosopher in some degree. b. He must understand symbols and speak in words
c. He must only contemplate in abstract and general terms. d. He must study the present in light of the past for purposes of the future.