The way to prevent the national debt from growing is for the budget not to be in deficit
a. True
b. False
Indicate whether the statement is true or false
True
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When an economy is above full employment and the government has a budget deficit, that deficit
A) is less than the structural deficit. B) exceeds the structural deficit. C) is equal to the cyclical deficit minus the structural deficit. D) is equal to the cyclical deficit. E) is equal to the structural deficit minus the cyclical deficit.
Refer to Figure 6-25. Suppose the same supply and demand curves apply, and a tax of the same amount per unit as shown here is imposed. Now, however, the sellers of the good, rather than the buyers, are required to pay the tax to the government. After the sellers are required to pay the tax, relative to the case depicted in the graph, the burden on buyers will be
a. Larger, and the burden on sellers will be smaller
b. Smaller, and the burden on sellers will be larger
c. The same, and the burden on sellers will be the same
d. The relative burdens in the two cases cannot be determined without further information
Which of the following is a normative statement?
A. A decrease in price leads to an increase in quantity consumed. B. Incomes grow more rapidly in high-tax states than low-tax states. C. People would be better off if government expenditures were higher. D. People will buy less butter at $1.50 per pound than they will at $1 per pound.
Brokerage commissions:
A. are always a percentage of the amount of the trade. B. can differ reflecting the different services being offered. C. can vary but typically don't because firms tend to set them at the same levels. D. are set by government regulators so they cannot vary across firms for the same services.