If the U.S. government decides to eliminate a budget surplus by reducing taxes, the most likely effect would be
A. falling prices.
B. a reduction in the trade deficit.
C. an increase in unemployment.
D. upward pressure on prices.
Answer: D
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Income per capita is ________
A) gross domestic product divided by total labor force B) gross domestic product divided by total population C) gross domestic product divided by total amount of capital used D) gross domestic product divided by total unit of all goods produced
A ________ is the privilege granted to an individual or company by the government, which gives them the sole right to produce and sell a good
A) brand B) patent C) copyright D) trademark
According to the above table, at a price of $16 per DVD, there is
A) an equilibrium. B) a surplus of 3000 DVDs. C) a shortage of 3000 DVDs. D) a shortage of 1500 DVDs.
The price elasticity of supply is higher when
A) the number of producers in the market increases over time. B) the product in question is a complementary good. C) the number of buyers in the market increases. D) producers have less time to adjust to price changes.