If the debt of the federal government increases by $10 billion in one year, the budget:
A. deficit in that year increased by $10 billion.
B. deficit in that year must be $10 billion.
C. surplus in that year must be $10 billion.
D. surplus in that year decreased by $10 billion.
Answer: B
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Which of the following examples best describes the Law of Diminishing Marginal Benefit?
A) If a seller of notebooks in a perfectly competitive market charges above the market price, his profit decreases. B) With each additional pen Jill buys, her willingness to pay for another pen decreases. C) Each additional unit of ice cream that John consumes gives him more and more satisfaction. D) If the weather gets cold, the demand for ice cream will fall.
If demand is ________ with respect to price, a price increase will ________ total revenue.
A. inelastic; decrease B. unit elastic; decrease C. inelastic; increase D. elastic; increase
Refer to Figure 3-6. The figure above represents the market for coffee grinders. Compare the conditions in the market when the price is $15 and when the price is $21. Which of the following describes how the market differs at these prices?
A) At each price there is a shortage; the shortage is greater at $15 than at $21. B) At each price there is a shortage; firms will raise the equilibrium price in order to eliminate the shortage. C) The difference between quantity supplied and quantity demanded is greater at $21 than at $15. D) At each price the demand for coffee grinders exceeds the supply of coffee grinders.
Refer to Table 23-2. Using the table above, compute aggregate expenditure and identify the macroeconomic equilibrium
What will be an ideal response?