If there is a basic surplus and a negative total deficit, then
A) interest cost > basic surplus.
B) interest cost < basic surplus.
C) interest cost > positive total deficit.
D) interest cost < positive total deficit.
B
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If one is producing well within a production possibilities frontier, they are
A) using resources to the best of their ability. B) using resources at the lowest opportunity cost. C) using resources in an inefficient way. D) using resources in a way that maximizes their comparative advantage.
An export subsidy differs from a tariff in each of the following ways EXCEPT
A) a tariff generates revenue. B) a tariff is applied to imports. C) a tariff results in an efficiency loss. D) a tariff is a tax. E) a tariff discourages imports.
If the economy is operating at a point beyond its institutional production possibilities frontier (institutional PPF), then the economy is
A) producing Natural Real GDP and operating at the natural unemployment rate. B) producing less than Natural Real GDP and operating below the natural unemployment rate. C) producing more than Natural Real GDP and operating above the natural unemployment rate. D) producing more than Natural Real GDP and operating below the natural unemployment rate. E) none of the above
Inflation in the United States would cause China's massive dollar reserves to lose value.
a. true b. false