The government collects tax revenue of $100 million and has $105 million in outlays. The budget balance is a
A) surplus of $5 million.
B) deficit of $5 million.
C) surplus of $105 million.
D) deficit of $105 million.
E) surplus of $100 million and a deficit of $105 million.
B
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In the Classical model, a decrease in saving will result in saving being __________ than investment which will cause the interest rate to __________
A) greater; rise B) greater; fall C) less; rise D) less; fall
Profit can be defined as the
a. difference between the sales revenue of a business firm and the opportunity cost of the resources required to produce the goods supplied by the firm. b. difference between a company's income and direct monetary costs of production. c. difference between the price of a product and the consumer's valuation of the good. d. amount of total revenue earned by the firm minus its payments to stockholders.
During 2001-2012, the federal budget deficit
a. expanded and real government spending increased rapidly, indicating that fiscal policy was restrictive. b. expanded and real government spending increased rapidly, indicating that fiscal policy was expansionary. c. declined and real government spending fell, indicating that fiscal policy was restrictive. d. declined and real government spending fell, indicating that fiscal policy was expansionary.
A pollution tax encourages firms to develop more efficient abatement technology.
A pollution tax encourages firms to develop more efficient abatement technology.