When the federal government spends more money than it receives in __________, it creates a need to borrow money, which may be fulfilled internationally and impacts the nation’s trade balance.
a. taxes
b. sales
c. interest
d. income
a. taxes
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If government raised taxes on the rich and this resulted in a decrease in productivity, the increase in taxes will still definitely make society better off
Indicate whether the statement is true or false
An individual wanting the most liquid asset possible will hold
A) currency. B) a savings account. C) gold. D) U.S. government bonds.
In the HO model, the production possibility frontier is bowed out due to the assumption of
A) identical tastes. B) different factor intensities in the production of the two goods. C) increasing returns to scale. D) Two of the above.
When an isocost line is just tangent to an isoquant, we know that
A) output is being produced at minimum cost. B) output is not being produced at minimum cost. C) the two products are being produced at the least input cost to the firm. D) the two products are being produced at the highest input cost to the firm.