Suppose an economy has a balanced federal budget, and a large increase in oil prices plunges the economy into a recession. Tax revenues will ________ and expenditures on transfer payments will ________, resulting in a budget ________.

A. fall; increase; deficit
B. increase; increase; surplus
C. fall; fall; deficit
D. increase; fall; surplus


Answer: A

Economics

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Fill in the blank: Information is a ________ good

A) free B) scarce C) futile D) non-economic

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According to the graph shown, if the economy opens itself to free trade, it will become a:

This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price
for that good.

A. net exporter.
B. net importer.
C. autarky.
D. quota rent seeker.

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The term business cycle implies that economic fluctuations follow a regular, predictable pattern

a. True b. False Indicate whether the statement is true or false

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In general, which form of business organization has the greatest capacity to raise large sums of financial capital?

A) sole proprietorships B) partnerships C) limited partnerships D) corporations

Economics