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What best describes the economic effect that results from a government budget surplus?
Wiki User
∙ 11y ago
Overall demand decreases reducing the incentive for producers to increase production
Wiki User
∙ 11y ago
Wiki User
∙ 11y agoOverall demand decreases, reducing the incentive for producers to increase production
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What best describes the economic effect that results from the government having a budget-surplus?
Overall demand decreases, reducing the incentive for producers to increase production
What describes the situation that occurs when the equilibrum quantity has been reached?
there is no surplus or shortage
Does an increase of economic surplus in a market always mean that economic efficiency has increased?
No. If marginal cost of production decreases but market output stays the same, economic surplus and deadweight loss both increase, causing economic efficiency to decrease.
When does a budget surplus result?
A budget surplus results when the goverment collects more money than it spends.
Why is an economic surplus necessary for economic development?
Economic surplus is necessary for development because it means a economy is producing more than its consuming. So it is exporting and making money and getting richer which leads to development.
What is the best describes the economic effect that results from the government having a budget surplus?
Overall demand decreases reducing the incentive for producers to increase production
What best describes the economic effect that results from the government having a budget-surplus?
Overall demand decreases, reducing the incentive for producers to increase production
Which of the following best describes the economic effect that results from the government having budget surplus?
Demand increases, pushing producers to increase supply --> overal demand decreases, reducing the incentivefor producers to icrease production
What best describes the purpose of agricultural marketing act?
The government purchased surplus crops from farmers. A+
What are the effects and results of surplus?
I d
What describes the situation that occurs when the equilibrum quantity has been reached?
there is no surplus or shortage
Does an increase of economic surplus in a market always mean that economic efficiency has increased?
No. If marginal cost of production decreases but market output stays the same, economic surplus and deadweight loss both increase, causing economic efficiency to decrease.
What has the author Anders Danielson written?
Anders Danielson has written: 'The economic surplus' -- subject(s): Economic conditions, Economic development, Surplus (Economics) 'The political economy of development finance' -- subject(s): Economic policy, Fiscal policy
Distinguish between domestic and international finance?
Finance is the process of transferring fund from surplus economic unit to deficit economic unit. Domestic finance is the process of transferring fund from surplus economic unit to deficit economic unit within a country. And International finance is the process of transferring fund from surplus economic unit to deficit economic unit when any of these units is located outside a national country.
When does a budget surplus result?
A budget surplus results when the goverment collects more money than it spends.
Why is an economic surplus necessary for economic development?
Economic surplus is necessary for development because it means a economy is producing more than its consuming. So it is exporting and making money and getting richer which leads to development.
What is surplus economic unit?
An economic unit having access of funds and wants to lend his funds
