Question:

Answer: Consumers purchase graphic historical novels from local shops.

Question: 2010 Budget - Projected deficits and debt increases

Which of the following statements best accounts for the data shown in the graph above?

Answer: Spending relative to tax revenue drastically increased in 2009.

Question: Which of these is an example of the line marked “Artificial Price”?

Answer: Rent Controls

Question: Sixty-five nations sign a treaty pledging caps on industrial emissions and the development of renewable resource energy production. Which of the following would be a long-term positive externality for global health?

Answer: Lower rates of childhood asthma

Question: If private investors put a lot of money into the U.S. economy, the gross domestic product will increase. What else will likely occur?

Answer: An increase in inflation and a decrease in the unemployment rate

Question: The main benefit of a technical school certification is

Answer: reduced costs compared to other degree options

Question: One bank offers a 2% variable rate loan, while a competitor offers a 3% fixed rate loan over the same period. It is likely better to choose the fixed rate loan, even though the interest rate is higher, because the rate on the

Answer: variable loan can increase dramatically

Question: If the economy is in decline, and the Federal Reserve wants to encourage banks to lend to consumers, which step will the Fed likely take?

Answer: Decrease the discount rate.

Question: How are start-up costs related to natural monopolies?

Answer: High start-up costs prevent others from offering the same service in a natural monopoly.

Question: Imagine the federal government has a national debt of $10.2 trillion. Congress’s budget for the coming year includes a spending projection of $4.2 billion. Tax revenue projects $3.8 billion. Which fiscal policy should Congress adopt to avoid increasing the national debt?

Answer: Decrease Spending