Suppose that the government of Summerfield spends $2 trillion in 2015 and receives tax revenues of $1.5 trillion. Which of the following is TRUE?
A) Summerfield has a budget surplus of $0.5 trillion.
B) Summerfield has a budget deficit of $0.5 trillion.
C) Summerfield has a trade deficit of $0.5 trillion.
D) Summerfield has a trade surplus of $0.5 trillion.
B
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Investment spending increases during ________, and decreases during ________
A) a deflation; an inflation B) a recession; an expansion C) an expansion; a recession D) a recession; a depression
Because trade raises the amount that an economy can produce by letting firms and workers play to their comparative advantage, trade will also cause
a. the average level of wages in an economy to fall. b. the average level of wages in an economy to rise. c. the average number of jobs in an economy to rise. d. the average number of jobs in an economy to fall.
Assume that corn and soybeans are alternatives that could be grown by most farmers. An increase in the price of corn will
a. increase the supply of corn. b. increase the supply of soybeans. c. decrease the supply of soybeans. d. decrease the supply of corn. e. have no effect on the supplies of corn and soybeans.
Suppose the demand for Digital Video Recorders (DVRs) is given by Q = 250 - .25p + 4pc, where Q is the quantity of DVRs demanded (in 1000s), p is the price of a DVR, and pc is the price of cable television
How much does the quantity demanded for DVRs change if the p rises by $40? A) drops by 10,000 DVRs B) increases by 16,000 DVRs C) drops by 2,500 DVRs D) increases by 4,000 DVRs