In the early 1990s, economists became alarmed over the national debt because it
a. was larger than three months' GDP.
b. was growing faster than GDP.
c. had reached twice the size of GDP.
d. was growing faster than private debt.
b
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Which of the following economists is/are considered the leader(s) in the theory of market behavior?
(a) Alfred Marshall (b) Adam Smith (c) David Ricardo (d) All of the above
If bundles of goods A and B lie on the same indifference curve, one can assume the individual
a. prefers bundle A to bundle B. b. prefers bundle B to bundle A. c. enjoys bundle A and B equally. d. bundle A contains the same goods as bundle B.
If you hold a bond at a time when market interest rates are increasing, you will find that the bond's value has
a. remained the same since the interest payment remains constant b. increased c. increased only if the market interest rate exceeds the interest rate payable on the bond d. declined because you will receive a lower price when you sell the bond e. increased only if the interest payable on the bond exceeds the market interest rate
The opportunity cost of a particular good tends to increase with its rate of output because some resources cannot be easily adapted from the production of one good or service to another
a. True b. False Indicate whether the statement is true or false