Discuss the federal budget history of the United States since 1970. Make sure to note specifically the budget position of the United States during the last of the 1990s and compare it to the situation in 2014
What will be an ideal response?
Starting in the early 1970s, the federal budget went into deficit and remained there until 1997. Then from 1997 to 2001, the government had a budget surplus, that changed back to a deficit in 2002. Some of the budget deficits, particularly those in the 1980s and in recent years, were quite large. In the late 1990s the U.S. budget surplus was, at times, large—over $200 billion a year. In 2014, the budget deficit was very large, over $600 billion.
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Lionfish is an aquatic invasive species in the southeastern U.S. and the Caribbean. Current removal policies focus on harvesting the lionfish for human consumption. However, a fishing license is required to fish in most southern states
Assume the supply of fishing licenses is Qs = 50 + 0.05L + 40P, where L = lionfish population and P = price of a fishing license, and the demand for fishing licenses is Qd = 1400 – 60P. What is the equilibrium price and quantity of fishing licenses when L = 1,000? A) P = $8.5, Q = 890 B) P = $13, Q = 620 C) P = $13.5, Q = 590 D) P = $13.5, Q = 591
The government could offer a subsidy to offset a:
A. negative externality. B. positive externality. C. network externality. D. A subsidy could offset any of these.
Explain and give examples of other forms of barriers to free trade besides tariffs and quotas
Primary credit extended by the Fed is:
A. the highest interest rate loans offered by the Fed. B. loans offered at the prime interest rate for periods exceeding thirty days but less than one year. C. for banks needing long-term loans to work out financial problems. D. short-term, usually overnight loans.