Savings are generated whenever:
A. prices are rising.
B. current spending exceeds current income.
C. current income exceeds current spending.
D. real GDP exceeds nominal GDP.
Answer: C
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Because of the positive externality of vaccinations, economic efficiency would be improved
A) if more people were vaccinated. B) only if no people were vaccinated. C) only if all people were vaccinated. D) if fewer people were vaccinated.
Which of the following is most likely to increase the supply of corn?
a. The farm worker's union successfully negotiates a pay increase for corn harvest workers. b. The Surgeon General announces that eating corn bread contributes to baldness in men. c. Congress and the President eliminate subsidies formerly paid to corn farmers. d. Farmers that grow soybeans can also grow corn, and the price of soybeans drops by 75 percent.
Refer to the table below. If European governments decided to fix the price of a euro at $0.80, they would have to:
The table below shows the supply and demand schedules for the European euro.
A. Buy 286 euros
B. Buy 114 euros
C. Sell 114 euros
D. Sell 286 euros
When federal government spending amounts to less than tax revenues, the federal government runs a budget deficit
Indicate whether the statement is true or false