Consider three different closed economies with the following national income statistics. Country A has taxes of $40 billion, transfers of $20 billion, and government expenditures on goods and services of $30 billion. County B has private savings of $60 billion, and investment expenditures of $40 billion. Country C has GDP of $300 billion, investment of $90, consumption of $180 billion, taxes of
$60 billion and transfers of $20 billion. From this information, we know that
a. country A has the largest government budget deficit.
b. country B has the largest government budget deficit.
c. country C has the largest government budget deficit.
d. The government budget deficit is equal in all three countries.
b
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A perfectly competitive firm is currently producing where price is $8 and both marginal cost and average variable cost are $9 . To maximize profit or minimize loss in the short run, this firm should
a. raise its price b. increase its output c. reduce its output d. lower its price e. shut down
Explain why companies that choose low-pollution technologies will find it hard to survive in a competitive industry
Which of the following is not considered a factor contributing to economic growth?
a. Growth in the quantity and quality of labor resources used b. Growth in physical capital inputs (machines, tools, buildings, and inventories) c. Growth in the money supply relative to the growth of final goods and services d. Government protection of property rights
The federal government receives most of its revenue from personal income taxes and payroll taxes
a. True b. False Indicate whether the statement is true or false