What is the difference between the deficit and the debt?
What will be an ideal response?
The budget deficit is the difference over some time period, usually a year, between government receipts and outlays (expenditures plus transfers). When outlays exceed receipts, the budget is in deficit. The national debt is the accumulation of past deficits. The budget deficits in the 1980s and the early 1990s were often over $150 billion a year or more. The national debt at the end of 1998 was about $3.3 billion on a net basis.
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Moving along the potential GDP line, the money wage rate changes by the same percentage as the change in the price level so that the real wage rate
A) stays at the full-employment equilibrium level. B) increases. C) might either increase or decrease. D) decreases. E) stays the same, though not necessarily at the full-employment equilibrium level.
Which of the following is most likely to be observed in a community where legal ceilings are imposed on residential rents?
A) Landlords will do a better job of property maintenance. B) People moving into the community will have difficulty locating residential space to rent. C) Poor people will be able to find adequate housing. D) Tenants will reduce their use of housing space. E) The people most in need of housing will be able to obtain the space they want.
Which of the following is a characteristic of the oligopoly model?
a. The oligopoly market consists of only a small number of sellers. b. The sellers in an oligopoly market are price takers. c. The output decisions taken by sellers are uniform and steady. d. There are barriers to the exit of firms in an oligopoly market.
Refer to the accompanying figure. If Laura and Chris are the only two consumers in this market, then the market demand for hamburger will be 9 pounds per week when the price of hamburger is:
A. $1.00 per pound. B. $2.50 per pound. C. $1.50 per pound. D. $2.00 per pound.