The issuance of debt involves some intergenerational transfer of income; long after the debt is issued, a new generation of taxpayers must make interest payments on the debt
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
La Dila Corp . decided to sponsor an AIDS awareness campaign when it discovered that its rival had been sponsoring several fund-raising events for AIDS-afflicted children. This is an example of ________
A) bounded rationality B) pure altruism C) impure altruism D) consumerism
One reason that monopolies often earn zero economic profits is that
a. many monopolies are regulated by the government b. competitors cut prices c. barriers to entry are low d. collusion prevents profits e. costly concessions to labor suppliers reduce economic profit
A candle manufacturer produces 4,000 units when the market price is $11 per unit and produces 6,000 units when the market price is $13 per unit. Using the midpoint method, for this range of prices, the price elasticity of supply is about
a. 6. b. 2.4. c. 0.4. d. 0.67.
Production possibilities curves for large economies are generally bow-shaped because:
A. opportunity costs tend to decrease with increases in production. B. specialization gives some producers a comparative advantage. C. opportunity costs tend to increase with increases in production. D. as more resources are used to produce a good, those resources become less expensive.