If the federal government were to run a budget surplus, this would
a. increase the size of the national debt.
b. reduce the size of the national debt.
c. leave the size of the national debt unchanged.
d. decrease the national debt only if the government also reduces the supply of money.
B
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Robert and Janet are discussing unemployment and inflation in their country. Robert, on the basis of a recent newspaper report, claims that a 5% reduction in unemployment will lead to a 2% rise in inflation
On the other hand, Janet insists that inflation is a far bigger problem than unemployment and should be addressed with prime importance. Classify Robert's and Janet's statements as descriptive or advisory. Explain your answer.
Which type of firm produces the largest share of manufacturing output?
A) proprietorships only B) partnerships only C) corporations only D) Proprietorships and corporations are tied.
The moral hazard associated with managers whose productivity is difficult to quantify can be decreased with
A) piece-rate contracts. B) year-end bonuses. C) decreased wages. D) adverse selection.
In Figure 5.1, the difference between total costs and variable cost is:
A. average total cost. B. fixed cost. C. total costs are positive when output is zero implying fixed costs. D. All of these.