What is the difference between the U.S. current account deficits of the 1980s and the 1990s?
What will be an ideal response?
In the 1980s, the government budget balance (T-G) turned into a large negative, and foreign financing filled the gap. In the 1990s, the federal budget moved to a positive balance, but investment expanded and private savings fell, overwhelming the changes in the government budget position.
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If an excess quantity of labor demanded exists in a free market, there is a tendency for
A) quantity supplied to rise. B) the wage rate to fall. C) quantity demanded to fall. D) the wage rate to rise.
According to the text, when management selects a price or quantity, it also selects the other. Explain why this is true
What arguments have been advanced in defense of price discrimination?
What will be an ideal response?
Suppose that cigarette smokers create a negative externality. Further suppose that the government imposes a tax on cigarettes equal to the per-unit externality. What is the relationship between the after-tax equilibrium quantity and the socially optimal quantity of cigarettes?
a. They are equal. b. The after-tax equilibrium quantity is greater than the socially optimal quantity. c. The after-tax equilibrium quantity is less than the socially optimal quantity. d. There is not enough information to answer the question.