Suppose the government has a $180 billion budget deficit. If the government creates $95 billion of new money to finance this deficit and finances the rest by borrowing, the amount borrowed from the public will be
A) $85 billion. B) $95 billion. C) $180 billion. D) $275 billion.
A
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As the stock of capital grows, there will typically be ________ depreciation
A) less B) more C) the same amount of D) no
A negative externality imposes a burden or cost on others
Indicate whether the statement is true or false
If restrictions on entry and exit of firms are introduced in free markets, ________
A) all existing firms earn equal profits in the long run B) existing firms incur equal losses in the long run C) the market allocates resources efficiently D) resources in the market are not allocated efficiently
Refer to the table above. If you are told that Country B is very much richer than Country A, then the correct answer is
A) country B will export good S. B) country A will export good S. C) both countries will export good S. D) trade will not occur between these two countries. E) both countries will import good S.