Sales in the retail sector have been sluggish, and consumer confidence has recently declined, indicating fewer planned purchases. In response, the president sends an expansionary government spending p
A. Discretionary Recognition
B. Automatic Action
C. Discretionary Action
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If a market is currently in equilibrium, which of the following is least likelyto cause an imbalance between supply and demand and a deadweight loss to the economy？
A. Subsidies to producers.
B. A legal price floor on the product.
C. A change in the equilibrium market price.
If a government budget deficit increases, net exports must:
A. increase,or the excess of private saving over private investment must decrease.
B. decrease,or the excess of private saving over private investment must increase.
C. decrease,or the excess of private saving over private investment must decrease.
Economic profits are zero if:
A. Implicit costs equal explicit costs.
B. Economic depreciation equals zero.
C. Total revenue equals the sum of all opportunity costs.
In a developed economy, the primary source of growth in potential GDP is:
A. Capital investment.
B. Labor supply growth.
C. Technology advances.
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