If in fiscal year 2015, the federal government receives $2.2 trillion in revenues and spends $3.5 trillion for goods and services, the national debt will
A. increase by $2.2 trillion.
B. increase by $1.3 trillion.
C. decrease by $1.3 trillion.
D. decrease by $2.2 trillion.
Answer: B
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The unregulated, single-price monopolist illustrated in the figure above will set a price of
A) $2.00 per unit. B) $6.00 per unit. C) $8.00 per unit. D) $10.00 per unit.
A surplus item is
A) the import of goods or services that is not needed by residents of a country. B) the import or export of products that are by-products of the manufacturing of export goods. C) any transaction that leads to a receipt by a resident of a country or its government. D) any transaction that leads to a payment by a resident of a country or its government.
Allocative efficiency occurs where:
a. the price of a good is less than the marginal cost of producing it. b. the price of a good is greater than the marginal cost of producing it. c. the price of a good is equal to the marginal cost of producing it. d. the greatest quantity of output is available for sale.
Moral hazard occurs when one side of an economic relationship:
A. takes costly actions that the other side of the relationship cannot observe. B. takes actions that is contrary to the religious beliefs of the other side of the economic relationship. C. takes actions that the other side of the relationship enjoys doing. D. takes actions that the other side of the relationship cannot force them to do.