The argument that the national debt imposes a burden on future generations becomes more compelling as
A. the percentage of the national debt held by foreigners rises.
B. tax rates rise.
C. interest rates fall.
D. debt service payments (interest) rise.
Answer: A
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Technology reduces the average cost of production, so in the long run
i. perfectly competitive firms produce at a lower average cost. ii. the market price of the good falls. iii. firms with older plants either exit the market or adopt the new technology. A) i only. B) i and ii. C) iii only. D) i and iii. E) i, ii, and iii.
Cutting the poor off welfare is
A. the liberal position. B. the conservative position. C. both the liberal and the conservative position. D. neither the liberal nor the conservative position.
Joe and Steve are duopolists who each can follow two strategies: cooperate and jointly act like a monopolist, or don't cooperate (cheat) and act like duopolists. Their profits are as follows:If both cooperate: both receive $1 millionIf one cooperates:cooperator receives $200,000, cheater receives $1.2 millionIf both cheat:both receive $500,000What will they do?
What will be an ideal response?
Suppose that the number of units of good A consumed falls 10 percent when the price of good B falls 5 percent. The cross price elasticity of demand between goods A and B is
A. 2.0. B. 0.2. C. 0.5. D. 5.