If a government's income tax receipts exceed its expenditures, the government is running a
A) surplus and is a net borrower of funds.
B) surplus and is a net saver of funds.
C) deficit and is a net borrower of funds.
D) deficit and is a net saver of funds.
B
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If a decision is made and it is the best choice for society, the decision is said to be
A) a valid economic choice. B) made in self-interest. C) made in social interest. D) consist with scarcity. E) a want-maximizing choice.
If capital increases by two units, and MRTS is 1, then what is the MPL?
A) 2 B) 1/2 C) 1 D) Not enough information given.
Figure 14.2 represents the market for used cameras. Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25 for a lemon (low-quality) used camera. Initially buyers believe that 50% of used cameras in the market are lemons (low quality). Compared to the outcome with neutral expectations, how many fewer cameras are sold in equilibrium?
A. 10 B. 15 C. 20 D. 25
Differences in the stock of human capital between nations are an example of a(n):
A) proximate cause of prosperity. B) implicit cause of prosperity. C) explicit cause of prosperity. D) fundamental cause of prosperity.