When government outlays exceed tax revenues, does the government have a budget deficit or surplus?
What will be an ideal response?
When government outlays exceed tax revenues, the government is running a budget deficit.
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At one point along a PPF, 50 tons of coffee and 100 tons of bananas are produced. At another point along the same PPF, 30 tons of coffee and 140 tons of bananas are produced. The opportunity cost of a ton of coffee between these points is
A) 7/5 of a ton of bananas per ton of coffee. B) 1/2 of a ton of bananas per ton of coffee. C) 5/7 of a ton of bananas per ton of coffee. D) 2 tons of bananas per ton of coffee.
The price elasticity of supply of laptop computers equals 1.5 if
A) a rightward shift of the demand curve for laptops causes the quantity supplied to increase by 1.5 percent. B) a rightward shift of the demand curve for laptops causes a 1.5 percent increase in their price. C) for every 1 percent that laptop prices increase, computer makers produce another 1.5 percent laptops. D) for every $1.00 that laptops increase in price, computer makers produce another 150 laptops.
Which of the following sets of preferences can not satisfy the property of transitivity?
a. Plan A is preferred to plan D. Plan D is preferred to plan B. Plan C is preferred to plan B. b. Plan A is preferred to plan B. Plan B is preferred to plan C. Plan A is preferred to plan C. c. Plan C is preferred to plan A. Plan B is preferred to plan A. Plan C is preferred to plan B. d. Plan D is preferred to plan C. Plan C is preferred to plan B. Plan B is preferred to plan D.
Which of the diagrams illustrate(s) the effect of a decline in the price of personal computers on the market for software?
A. A only.
B. A and D.
C. B only.
D. D only.