Which of the following is TRUE about how trade deficits and government budget deficits are related?
A) The government budget deficit leads to higher interest rates that will lead to a trade deficit.
B) The government budget deficit leads to lower interest rates that will lead to a lower trade deficit.
C) The trade deficit leads to a reduction in investment that leads to a government budget deficit.
D) The trade deficit leads to a decline in imports relative to exports that leads to a government budget deficit.
A
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Which of the following is an example of a product that is made available through public provision?
i. local police protection ii. public schools iii. local fire department A) i only B) i and ii C) iii only D) i and iii E) i, ii, and iii
When a tax is levied on buyers of a good,
a. government collects too little revenue to justify the tax if the equilibrium quantity of the good decreases as a result of the tax. b. there is an increase in the quantity of the good supplied. c. a wedge is placed between the price buyers pay and the price sellers effectively receive. d. the effective price to buyers decreases because the demand curve shifts leftward.