A budget deficit exists when
A. government spending exceeds government tax revenues.
B. government spending equals government tax revenues.
C. the public debt decreases.
D. tax revenues exceed government spending.
A. government spending exceeds government tax revenues.
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Because consumers want more Baby Bigfeet dolls, more Baby Bigfeet dolls will be produced and brought to the market. This is an example of
a. consumer sovereignty b. resources not being scarce c. ceteris paribus d. a natural resource e. macroeconomic activity
In 1972, one could buy a bag of chips, a pound of hamburger, a package of buns, and a small bag of charcoal for about $2.50 . If the same goods today cost $6.00, then which pair of CPIs would make the cost in today's dollars the same for both years?
a. 60 in 1972 and 150 today b. 65 in 1972 and 156 today c. 75 in 1972 and 160 today d. 90 in 1972 and 145.8 today
Good A has a price elasticity of demand of .27, while good B has a price elasticity of demand of 2.9. To raise the most tax revenue, the government should:
A. place a unit tax on good A. B. place a unit tax on good B. C. raise the price elasticity of demand for good A. D. subsidize the production of good B.
Which of the following would NOT be considered a fixed cost of production?
A) wages paid to labor B) the opportunity cost of capital C) interest payments on a loan D) insurance payments on plant and equipment