Author Question: Starting from a balanced budget, which of the following would NOT cause a government budget deficit? ... (Read 36 times)

khang

  • Hero Member
  • *****
  • Posts: 569
Starting from a balanced budget, which of the following would NOT cause a government budget deficit?
 
  A) A decrease in taxes
  B) An increase in spending of goods and services
  C) An increase in transfer payments
  D) A 50 percent increase in spending accompanied by a 50 percent increase in taxes

Question 2

Which of the following statements is FALSE?
 
  A) Comparative advantage is the principle upon which trade patterns are based.
  B) Opportunity cost measures the real cost to a country of producing a certain product.
  C) The gains from trade are the result of differences in opportunity cost and comparative advantage.
  D) A country that possesses an absolute advantage will always have a comparative advantage.


ong527

  • Sr. Member
  • ****
  • Posts: 285
Answer to Question 1

D

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Carbamazepine can interfere with the results of home pregnancy tests. If you are taking carbamazepine, do not try to test for pregnancy at home.

Did you know?

Pubic lice (crabs) are usually spread through sexual contact. You cannot catch them by using a public toilet.

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

Did you know?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

For a complete list of videos, visit our video library