A country's government runs a budget deficit when which of the following occurs in a given year?
A) The amount of new loans to developing nations exceeds the amount of loans paid off by developing nations
B) Government spending exceeds tax revenue
C) The debt owed to foreigners exceeds the debt owed to the country's citizens
D) The amount borrow exceeds the interest payment on the national debt
E) Interest payments on the national debt exceed spending on goods and services
Ans: B) Government spending exceeds tax revenue
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In the figure above, point D is
A) less production efficient than point C. B) production efficient and point A is not production efficient. C) not production efficient and point B is production efficient. D) production efficient and point B is not production efficient.
Coins and paper bills used as money:
a. currency b. commodity money c. representative money d. fiat money
Suppose that a consumer's preferences are well behaved in that properties 4-1 to 4-4 are satisfied and the initial equilibrium consumption bundle consists of 10 units of X and 25 units of Y. If PY increases such that the new equilibrium consumption bundle is 15 units of X and 10 units of Y, then goods X and Y are:
A. unrelated. B. normal goods. C. complements. D. substitutes.
A geologist tells the ACME Mining Company that she's certain there is a gold vein one thousand feet below the surface of its property, but ACME still decides not to mine for that gold. How would an economist explain their decision?
What will be an ideal response?