One reason the public debt will not bankrupt the federal government is that the:
A. burden of the debt will be crowded out by new investment.
B. debt can be refinanced by selling new bonds.
C. cost is shifted to future generations.
D. debt has a procyclical effect on the economy.
Answer: B
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From a Keynesian perspective, the way out of recession is to
A. Get consumers to spend more on goods and services. B. Get consumers to spend less on goods and services. C. Use monetary restraint. D. Wait for the economy to fix itself.
If the firm were a perfect competitor in the long run, what price would it charge?
When considering marginal revenue for the monopolist, which of the following is FALSE?
A) To sell more of a particular product, given the industry demand curve, the monopoly firm must lower the price. B) An essential point for the monopolist, marginal revenue is always less than price. C) Marginal revenue is always less than price because price must be reduced on all units to sell more. D) The more the monopolist wants to sell, the higher the price it has to charge in order to make more profits.
Europe may not be an optimum currency area because
A. people speak different languages. B. financial markets are weak. C. workers are not very mobile. D. the countries do not trade very much with each other.