If a local government collects taxes of $500,000, has $350,000 of government consumption expenditures, makes transfer payments of $100,000, and has no interest payments or investment, its budget would
A. be in balance with neither a surplus nor a deficit.
B. show a surplus of $150,000.
C. show a deficit of $50,000.
D. show a surplus of $50,000.
Answer: D
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Which of the following statements is true?
A) The command system is remarkable at providing price signals that guide resources in a way that maximizes social surplus. B) Market economies minimize waste and provide incentives to all market participants to promote their own interests. C) Coordination of different economic agents and bringing them together to trade is a central problem of a free market economy. D) The broader interests of societies are met more often under a command system in comparison to a market system.
In the simple deposit expansion model, if the banking system has excess reserves of $75, and the required reserve ratio is 20%, the potential expansion of checkable deposits is
A) $75. B) $750. C) $37.50. D) $375.
The GI Bill provided educational opportunities to many young men returning from military service. Using a production possibilities curve, demonstrate how the GI Bill affected economic growth and explain your answer
Real GDP is another term for
a. current dollar GDP. b. actual GDP. c. constant dollar GDP. d. tangible GDP.