If the government borrows to purchase goods and services, today's consumption of government goods and services will be paid for by
A) today's taxpayers and tomorrow's taxpayers in even shares.
B) today's taxpayers.
C) future taxpayers.
D) government employees.
C
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It takes a considerable amount of time to increase the production of pork. This implies that
A. the short-run supply curve for pork is relatively less elastic than the long-run supply curve for pork. B. the long-run supply curve for pork is relatively less elastic than the short-run supply curve for pork. C. a change in the demand for pork will not affect its price in the short run. D. an increase in the demand for pork will elicit a larger supply response in the short run than in the long run.
At the time of the South Korean financial crisis, the merchant banks were
A) almost virtually unregulated. B) subject to heavy government regulation. C) engaged in long-term lending to the corporate sector. D) restricted to long-term foreign borrowing.
A Social Security system in which payroll taxes that workers and their employers pay in go directly to retirees and other beneficiaries is known as
A) a pay-as-you-go system. B) an individual-account system. C) a primary-deficit system. D) a social-lockbox system.
In the short term, an increase in government spending may
A. raise taxes but reduce wages. B. raise prices and wages. C. raise wages and reduce inflation. D. reduce taxes and wages.