A fall in the government's budget deficit will lower
A) equilibrium GDP and consumption.
B) consumption and saving.
C) saving and GDP.
D) All of the above are correct.
D
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When Major League Baseball players were awarded the right of free agency, no player had to give up their own free agency in order for someone else to get it, and no one could be excluded from free agency
These two characteristics of free agency demonstrate that it meets the criteria of a A) pure public good. B) club good. C) common pool resource. D) pure private good.
Refer to the production possibilities frontier in the figure above. If the country moves from point a to point c, the opportunity cost of the move is
A) 30 million capital goods. B) 20 million capital goods. C) 10 million capital goods. D) 10 million consumption goods.
Suppose that when the price of pickles decreases, Teddy increases his purchase of ketchup. To Teddy
A) pickles and ketchup are complements. B) pickles and ketchup are normal goods. C) pickles and ketchup and substitutes. D) pickles are a normal good and ketchup is an inferior good.
Which of the following would help eliminate the trade deficit?
A. Reduced reservation wages B. Lower tariffs C. Expansionary fiscal policy D. A rise in the exchange rate