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
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Fill in the blank: Information is a ________ good
A) free B) scarce C) futile D) non-economic
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.
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
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