In a market economy, what determines whether an entrepreneur will continue in business or terminate the production of a new product?
a. government regulations
b. licensing by industrial development agencies
c. the profit or loss of the business
d. the taxes paid to the government relative to the subsidies received
C
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The government spending multiplier is equal to the tax multiplier
Indicate whether the statement is true or false
A bond that promises to pay $X in 10 years must be worth less than $X now.
Answer the following statement true (T) or false (F)
During a recession the:
a. actual budget deficit is smaller than the structural budget deficit. b. cyclical budget deficit is larger than the structural budget deficit. c. actual budget deficit is larger than the structural budget deficit. d. structural budget deficit is larger than the cyclical budget deficit. e. none of the above.
Between 1864 and 1900, the largest portion of railroad track (as a percentage of total annual construction) was laid in which region of the U.S.?
a. the Southeast b. the Northeast c. the Pacific Northwest d. the Great Plains region