On the revenue side, government income comes from taxes (T)
What will be an ideal response?
When revenues are not sufficient to cover outlays, the government borrows to cover the difference. The actual financing of a deficit is accomplished through the sale of government bonds by the U.S. Treasury.
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Which of the following is the best example of an activity that would be undertaken by an entrepreneur?
a. Buying and selling of stocks and bonds. b. Starting a new business. c. Working on an assembly line. d. Running for political office.
A person has a comparative advantage in producing a good if that person:
a. can produce the good at a lower absolute cost than anyone else. b. can produce the good at a lower opportunity cost than anyone else. c. can do a better job than anyone else. d. spends more money in out-of-pocket expenses than anyone else. e. can produce the good at a higher opportunity cost than anyone else.
During the off season, a fruit picker did not work, so he should be considered:
a. cyclically unemployed. b. frictionally unemployed. c. structurally unemployed. d. seasonally unemployed. e. naturally unemployed.
In the early 1930s, U.S. government expenditures increased as part of the New Deal without any change in taxes. This:
A. shifted the AD curve to the right. B. made the AD curve flatter. C. made the AD curve steeper. D. shifted the AD curve to the left.