When the federal government is running a budget deficit:
a. government tax revenues exceed government expenditures.
b. government expenditures exceed government tax revenues.
c. the economy must be in an economic recession.
d. the size of the national debt will decline.
b
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Which of the following sequences is most likely to happen when a market is profitable in the short-run?
a. News about profitability spreads; more firms enter the market; supply increases; equilibrium price decreases. b. News about profitability spreads; equilibrium price decreases; more firms enter the market; supply increases. c. More firms enter the market; news about profitability spreads; equilibrium price decreases; supply increases. d. More firms enter the market; supply increases; equilibrium price decreases; news about profitability spreads.
Buying a cup of coffee with a dollar bill represents the use of money as a:
A. medium of exchange. B. unit of account. C. store of value. D. commodity.
Which of the following might you believe if you say that "it's no one's fault" that the United States runs a trade deficit?
A. The United States is a successful rich economy that can afford a lot of imports. B. Other countries have used nontariff barriers to keep out U.S. exports. C. U.S. manufacturers are incompetent and unable to compete with foreign producers. D. American consumers borrow too much to buy imported goods like cars and electronics.
The United States temporarily operated outside the production possibilities frontier in
A. 1933. B. 1943. C. 1973. D. 1982.