A government budget surplus is
A) a situation in which the supply of goods in the economy is greater than the demand for goods.
B) a situation in which the amount spent by the government is greater than the amount collected in taxes.
C) the public debt.
D) an excess of revenues over government spending.
D
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A bundle:
A. is a specific combination of goods and services an individual could consume. B. describes the amount of people that choose a particular combination of goods. C. is a curve describing different combinations of goods and services an individual could choose to consume. D. is when a store sells goods at a discounted price.
Using Figure 3 above the distance between what 2 lines illustrate a recessionary output gap?
A. PAE2 to PAE3 B. Y2 to Y3 C. Y1 to Y2 D. PAE1 to PAE2
An increase in demand occurs when
A. we move up the demand curve. B. the demand curve shifts to the left. C. we measure price in money price rather than real price. D. the demand curve shifts to the right.
Market failure occurs when
A. resources are misallocated, or allocated inefficiently. B. perfectly competitive firms produce where MR = MC. C. firms are only able to earn a normal profit. D. firms that are incurring losses leave a market.