In fiscal year 2011, the U.S. government ran a deficit of about $1,300 billion. In fiscal year 2012, the government ran a deficit of about $1,087 billion. Other things the same, this change would be expected to have
a. decreased interest rates and investment.
b. decreased interest rates and increased investment.
c. increased interest rates and investment.
d. increased interest rates and decreased investment.
b
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When comparing the standard of living in two countries it is important to adjust total output for differences in:
A. population B. geographic area C. political systems D. employment levels
Suppose you have a choice between receiving a lump-sum payment of $10,000 today or four annual payments of $2,750 (with the first payment one year from today). Of the following, which is the highest annual interest rate at which you would prefer the four annual payments over the lump-sum payment?
a. 2% b. 5% c. 7% d. 10%
The supply curve for innovative activities tells us the quantity of innovative activities supplied, given their price.
Answer the following statement true (T) or false (F)
In the long run, a monopolistically competitive firm
A. earns zero economic profits. B. earns negative economic profits. C. can have positive, zero, or negative profits. D. earns positive economic profits.