The cyclical deficit is the portion of the deficit
A) that would exist if the economy were at full employment.
B) that does not add to the national debt.
C) that is the result of nondiscretionary federal spending.
D) created by fluctuations in real GDP.
E) that is the result of discretionary federal spending.
D
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Refer to Table 2-3. Dina faces ________ opportunity costs in the production of sliders and hot wings
A) negative B) constant C) increasing D) decreasing
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.
At the market clearing price
A) there is neither a shortage nor a surplus. B) quantity supplied equals quantity demanded. C) the supply and demand curves intersect. D) all of the above are correct.
Dillon is undecided about whether to eat at a restaurant or to order pizza at home. He then obtains a coupon for 10 percent off at the restaurant and decides to go there to eat. This is an example of
A) someone using criteria other than price to make a consumption decision. B) a lower price leading a consumer to substitute more of the less expensive good for the relatively more expensive good. C) a lower price leading a consumer to buy more of a good because of the income effect. D) a consumer making a decision irrationally.