How does inclusion of the current revenues and expenditures of the Social Security trust fund into the budget calculation affect the reported budget deficit of the federal government when the trust fund experiences a surplus?
A. It increases the reported deficit.
B. It reduces the reported deficit.
C. It exerts no effect on the reported deficit.
D. It increases the deficit during an economic boom but reduces it during a recession.
Answer: B
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Market economies rely on which of the following to allocate scarce resources?
a. government b. consumers c. relative prices d. real interest rates
Studies of real world markets suggest that prices and the number of firms of comparable size in a market are:
A. positively related. B. negatively or inversely related. C. not related. D. sometimes negatively or inversely related, but usually positively related.
The regulatory agency responsible for regulating the activities of life insurance companies is
A) the FDIC. B) the Fed. C) the FHLBS. D) the appropriate state agency where the company is operating.
GDP and GNP may differ
A) because some income generated by domestic production may be received as income by foreign residents. B) because some intermediate good inputs are imported. C) because some workers are illegal aliens. D) whenever tariff rates become excessively high.