If Walmart buys $50 million worth of consumer goods from China and sells them in the U.S., and China uses the $50 million to purchase U.S. bonds, U.S. net exports and U.S. net capital outflow both fall
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following statements about the national debt has the most validity?
a. Our large national debt can bankrupt the nation. b. If only Americans hold the debt, then payments of interest and principal are simply transfers from some Americans to other Americans. c. Our large national debt can lead to subjection by the people (especially foreigners) who hold the debt. d. The national debt represents a burden to future generations who will have to make huge payments of interest and principal.
If the government regulates the price a natural monopolist can charge to be equal to the firm's marginal cost, the government will likely need to subsidize the firm
a. True b. False Indicate whether the statement is true or false
Suppose that in a closed economy GDP is 11,000, consumption is 7,500, and taxes are 500 . What value of government purchases would make national savings equal to 2,000 and at that value would the government have a deficit or surplus?
a. 1,500, deficit b. 1,500, surplus c. 1,000, deficit d. 1,000, surplus
As a consequence of the condition of scarcity:
A. there is never enough of anything. B. production has to be centrally planned. C. individuals and communities have to make choices from among alternatives. D. things that are plentiful have relatively high prices.