In an effort to balance the budget, the government cuts spending rather than increasing taxes. What will happen to the consumption schedule?
A. It will become steeper.
B. It will become flatter.
C. It will shift upward.
D. It will shift downward.
E. It will remain the same and move along it.
Answer: D
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At the profit-maximizing level of output for a perfectly competitive firm, price equals marginal cost. Which of the following is also true?
A) Total revenue equals total cost. B) Marginal profit equals marginal cost. C) Average revenue equals average total cost. D) The difference between total revenue and total cost is the greatest.
When the economy is getting the most from its scarce resources it is called: a. equity
b. efficiency. c. equality. d. equal shares.
Which of the following statements is false?
A) When the value of a country's imports is greater than the value of its exports, the country's net exports will be a positive value. B) A country is running a trade deficit when the value of its imports is greater than the value of its exports. C) A country is running a trade surplus when the value of its exports is greater than the value of its imports. D) Net exports are sometimes referred to as the balance of trade.
The opportunity cost of working is the
A. Wage rate. B. Amount of leisure time that must be given up in the process. C. Earnings that could be made in an alternative job. D. Amount of consumption that is made possible.