Suppose we coupled the pay of Congress with the federal budget, so that for every billion dollars of deficit spending, a lawmaker's pay would be reduced $1,000 . How would this affect fiscal policy?
If personal income matters to a majority of Congress, we would expect significant reduction in the federal deficit. This assumption may be somewhat inaccurate, however. Many congressmen are extremely wealthy individuals who serve for power, not income. Also, to the extent that special interests can assist in supplementing congressional pay, deficit reduction might not be as significant as we would hope.
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Which of the following is included in Germany's GDP?
i. BMWs produced in a German-owned factory in South Carolina ii. the value of the stocks sold on the German stock exchange, the Frankfurt Stock Exchange iii. china produced by the English-owned Wedgewood Company at a factory in Berlin, Germany A) i and iii B) ii only C) iii only D) i and ii E) None of the above answers is correct.
If exports rise and imports fall, then
a. GDP will increase b. GDP will decrease c. GDP may remain unchanged d. net exports will fall e. transfers will rise
Describe the source of tension between cooperation and self-interest in a market characterized by oligopoly. Use an example of an actual cartel arrangement to demonstrate why this tension creates instability in cartels
Suppose that Tom bought a bike from Helen for $195. If Helen's reservation price was $185, and Tom's reservation price was $215, the seller's surplus from this transaction was:
A. $10 B. $215 C. $195 D. $20