Refer to the diagram. Assume that G and T 1 are the relevant curves, the economy is currently at A, and the full-employment GDP is B. This economy has a(n):
A. cyclically adjusted budget deficit.
B. actual budget deficit.
C. actual budget surplus.
D. neither a surplus nor deficit in the actual budget.
D. neither a surplus nor deficit in the actual budget.
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When speculators buy gasoline during the low demand spring in order to sell it during the high demand summer, they cause an increase in dead weight loss in the spring that is more than made up for by an increase in social surplus in the summer.
Answer the following statement true (T) or false (F)
The price of an nonrenewable resource is expected to rise at a rate equal to the
A) rate of supply. B) rate of population growth. C) rate of demand. D) interest rate.
People often choose to specialize and trade because:
A. it will allow them to enjoy more goods than they can create on their own. B. they can consume a bundle of goods on their production possibilities frontier. C. it always allows them to produce at a point beyond their own production possibilities frontier. D. they can take advantage of another nation’s poor choices.
An oligopoly is a market dominated by a few sellers.
Answer the following statement true (T) or false (F)