Scarcity of resources
A. affects market, but not public sector decision making.
B. affects both market and public sector decision making.
C. affects public sector, but not market decision making.
D. is really not an issue in such a wealthy nation as the United States.
Answer: B
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One characteristic of built-in or automatic stabilizers is that
A) they require no new legislative action by Congress to have an effect. B) they automatically produce surpluses during recessions and deficits during inflation. C) they have no effect on the distribution of income. D) they reduce the size of the public debt during times of recession.
The amount of interest owed on a loan of $75,000 after a year at an interest rate of 1 percent is:
A. $7,500. B. $75,750. C. $82,500. D. None of these is true.
Which of the following statements best describes balanced budget amendments?
a. A balanced budget amendment allows small, temporary deficits that might, in some cases, be necessary. b. A balanced budget amendment prevents even small, temporary deficits that might, in some cases, be necessary. c. A balanced budget amendment allows large, temporary deficits that might, in some cases, be necessary. d. A balanced budget amendment prevents large, temporary deficits that might, in some cases, be necessary.
Which of the following best describes the situation at point B in Exhibit 10-3?
What will be an ideal response?