If Y = income, G = government spending, T = autonomous taxes, and t = income tax rate, then the government budget deficit can be expressed as
A) G - T/Y(t).
B) G - T.
C) Y + G - T - ty.
D) G - T - ty.
D
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The extra cost associated with undertaking an activity is called
A) opportunity cost. B) foregone cost. C) marginal cost. D) net loss.
The age-earning cycle shows an individual typically earning
A) a constant income (adjusted for inflation) over the entire working life of the worker. B) an income that cycles upward and downward as an individual ages. C) an income that increases with age, peaks, and then falls as retirement approaches. D) an income that declines until age 30-35 and then increases rapidly.
The cyclically adjusted deficit is the difference between annual government expenditures and tax revenues that would have occurred if the economy was:
A. in a recession. B. at zero unemployment. C. at full employment. D. at the trough of the business cycle.
All modern economies
A. depend on self-sufficient workers. B. depend on workers who have acquired a wide variety of skills ("jacks of all trades"). C. depend on workers with a high degree of specialized skills. D. depend on workers who can build their own tools.