The prospect of future deficits
A) would prompt government to vastly expand discretionary spending.
B) limits the ability of government to conduct fiscal policy in the near future.
C) requires a government to eliminate all entitlement spending.
D) encourages government to conduct expansionary fiscal policy.
B
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The above table shows the short-run total product schedule for the campus book store. Which employee has the highest marginal product (MP)?
A) the 10th employee B) the 5th employee C) the 4th employee D) the 1st employee
The cross-elasticity of demand between Homer's Holesome Doughnuts and Krusty's Krispy Crullers is 5.0, which indicates that Homer's doughnuts and Krusty's crullers are
A) complements and the relationship between the two goods is strong (that is, the quantity demanded of doughnuts is very responsive to changes in the price of crullers). B) complements and the relationship between the two goods is weak (that is, the quantity demanded of doughnuts is not very responsive to changes in the price of crullers). C) substitutes and the relationship between the two goods is strong (that is, the quantity demanded of doughnuts is very responsive to changes in the price of crullers). D) substitutes and the relationship between the two goods is weak (that is, the quantity demanded of doughnuts is not very responsive to changes in the price of crullers).