During an inflationary period caused by excessive aggregate expenditure, which type of government budget would most effectively combat inflation?
a. a deficit budget
b. a balanced budget
c. a surplus budget
d. a full-employment budget
c. a surplus budget
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Use the following graph of the demand for coffee to answer the question below.
Refer to the three demand curves for coffee and assume that coffee is a normal good. Which of the following would shift the demand for coffee from D1 to D2?
A. an increase in consumer incomes B. a decrease in the price of coffee C. an increase in the price of coffee D. a decrease in consumer incomes
Resources are all of the following EXCEPT
A) scarce and therefore require choices to be made. B) limited in quantity and can be used in different ways. C) unlimited and in abundance. D) the things we use to produce goods and services.
If a firm operates in a perfectly competitive market, then it will most likely
A) advertise its product on television. B) settle for whatever price is offered. C) have a difficult time obtaining information about the market price. D) have an easy time keeping other firms out of the market.
Which of the following would be excluded from the gross domestic product (GDP)?
a. The mayor of a city hiring more workers to improve the sanitation of the city b. The sale of mobiles decreasing significantly c. The government reducing welfare benefits d. A homemaker spending $20 taking the family out to lunch instead of cooking food , e. A consumer having his pickup truck tuned up at the local garage