A federal budget deficit exists when:
A. federal government taxation is decreasing.
B. federal government spending is increasing.
C. federal government spending exceeds tax revenues.
D. federal government assets are less than liabilities.
Answer: C
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The United States has a comparative advantage in producing airplanes if
A) it can produce them at a lower opportunity cost than can other nations. B) it can produce them at a lower dollar cost than can other nations. C) it can produce a larger quantity than can other nations. D) it has a larger quantity of skilled workers than do other nations.
An increase in expected future income increases ________
A. consumption expenditure, which increases current aggregate demand B. investment, which increases current aggregate supply C. the demand for money, which decreases current aggregate demand D. future consumption expenditure and has no effect on current aggre-gate demand
Human capital consists of the skills and knowledge that workers possess
a. True b. False
Figure 2-7
Which of the following could explain the shift in the production possibilities frontier from AB to AC in ?
a.
a productive improvement in petroleum production that has no effect on clothing production
b.
a productive improvement in clothing production that has no effect on petroleum production
c.
an increase in the size of the labor force that can produce either petroleum products or clothing
d.
oil drilling in Alaska is ended in order to protect the environment
e.
major oil reserves are discovered off the coast of Africa