As the outstanding debt of a nation becomes very large relative to the size of the economy,
a. the borrowing cost of the government will decline.
b. lenders will have no choice but to hold the outstanding bonds and to buy the new ones as they are offered.
c. a country like the United States will have no choice but to default on the payments to bond holders.
d. if the country has a central bank, it will almost certainly resort to money creation to service the debt rather than directly default.
D
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The study conducted by Eric Bond of Vanderbilt University on the repair histories of a large sample of pickup trucks over three years old ascertained that:
a. the repair costs of trucks held by original users was similar to those held by second hand users. b. the repair cost of trucks held by second hand users was higher compared to those held by original users. c. the repair cost of trucks held by original users was higher compared to those held by second hand users. d. the repair costs of trucks held by original users as well as those held by second hand users increased by the same magnitude every year.
In the long run
A. the expansion path shows how the input marginal products change as the firm's output level changes. B. all inputs are fixed. C. a firm is making the optimal input choice when the marginal rate of technical substitution is equal to the input price ratio. D. both a and b E. none of the above
Which income maintenance program was started to support the nation's farmers?
A) Supplemental Security Income B) food stamps C) Earned Income Tax Credit program D) AFDC
Explain how you can calculate average physical product and marginal physical product from information on total physical product and variable input
What will be an ideal response?