Differentiate between the Federal deficit and the Federal debt.
What will be an ideal response?
The Federal deficit is an annual concept referring to the shortfall between Federal revenues and expenditures in one year’s budget. The Federal debt is the accumulation of borrowing which results from the series of deficits minus any surpluses.
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The Laffer curve is
A. never referred to in modern day discussions of public finance. B. a curve that describes the relationship between tax rates and tax revenues. C. used to describe the relationship between consumption and hours worked. D. a curve that refers to the endowment of time.
Statistical evidence suggests that
A) free trade policies promote economic growth more effectively than do import substitution policies. B) import substituting policies tend to promote effective exploitation of scale economies. C) import substitution tends to lead to relatively low effective rates of protection. D) import substitution is to this day the preferred growth strategy promoted by the World Bank. E) import substitution proved to be the most effective aid for developing countries before 1970.
The amount of foreign aid provided by the United States ________
A) constitutes a major proportion of federal government outlays B) is the highest in percentage terms for any developed market economy C) averages about 2.7 percent of U.S. income per year D) is a very small percentage of gross national income
What is the difference between a supply schedule and a supply curve?
What will be an ideal response?