The average tax rate required to service the public debt is roughly measured by:
A. the absolute size of the debt.
B. the debt as a fraction of the GDP.
C. interest on the debt as a percentage of the GDP.
D. the ratio of government spending to the GDP.
C. interest on the debt as a percentage of the GDP.
You might also like to view...
Producer surplus is the difference between the lowest price a firm is willing to accept for a product and the price it actually receives for the product
Indicate whether the statement is true or false
If an auto dealer wants to hire a salaried salesman but is afraid of facing the adverse selection problem, the principle can
a. Hire a salesman who has a reputation for working hard b. Monitor the salesman to prevent shirking c. All of the above d. None of the above
Economic analysis assumes that, for each output level, the firm
a. operates at minimum point of its average total cost curve b. operates at minimum point of its long-run average total cost curve c. seeks lowest possible cost of producing that quantity of output d. produces at maximum point of its total revenue curve e. produces at maximum point of its total product curve
Economic growth and development in LDCs are low because many of them lack:
a. saving. b. infrastructure. c. a political environment favorable to growth. d. All of the answers are correct.