Which of the following is a positive statement?
A) We need to carefully protect our borders.
B) Inflation is the most damaging thing that can occur in an economy.
C) When tax revenues are less than government spending there is a budget deficit.
D) Foreign aid should be reduced to help reduce the national debt.
Answer: C
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Billy is considering the purchase of a rental house. The house costs $240,000 and it will generate annual revenues of $15,000 and annual expenses of $3,000
Nevertheless, Billy will need to borrow $240,000 at an interest rate of 7% per year in case he decides to make this investment. Should Billy purchase this house? A) No, he will lose money. B) Yes, his profits will be zero. C) No, his profits will be positive but close to zero. D) Yes, he will profit from this investment.
A perfectly competitive firm has a horizontal demand curve because it can sell as much as it wants at the market price
a. True b. False Indicate whether the statement is true or false
Public choice theorists contend that:
A. government can efficiently correct instances of market system failure. B. the existence of cost-benefit analysis has brought about the efficient use of resources in the public sector. C. public bureaucracies are inherently more efficient than private enterprises. D. public bureaucracies are inherently less efficient than private enterprises.
The way the U.S. government borrows money to finance deficits is by
A. purchasing foreign assets. B. lowering interest rates. C. selling shares of stock in the government. D. the U.S. Treasury selling bills and bonds.