Suppose that the economy has a structural surplus of $100 billion and is operating above potential output. From this we can infer that the budget as a whole:
A. is in surplus.
B. is in deficit.
C. could be in deficit or surplus depending on the size of the cyclical deficit.
D. is balanced.
Answer: A
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Under a rule of reason approach, an act is illegal:
a. only if it is shown to result in an anticompetitive outcome. b. if two parties merge. c. if a firm engages in price discrimination. d. if two firms engage in price fixing. e. if two firms undertake a joint venture
The international organization that replaced the General Agreement on Tariffs and Trade (GATT) is the
a. World Bank. b. Export-Import Bank. c. World Trade Organization. d. International Monetary Fund.
The Heritage Foundation in 2012 ranked which of the following economies to have among the highest economic freedom?
A. The United States B. Germany C. Argentina D. Hong Kong
Marginal rate of substitution between X and Y is
a. total utility of X divided by total utility of Y. b. marginal utility of X divided by marginal utility of Y. c. total utility of X divided by marginal utility of Y. d. none of the above.