Deficits are a burden on future generations if they
A) cause higher rates of inflation to occur.
B) are not used for government capital formation.
C) cause national saving to fall.
D) are always a primary government deficit.
C
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Information is a scarce good because
A) buyers typically know more than sellers about the products they are selling. B) competition encourages buyers and sellers to conceal a portion of what they know. C) its possession enables people to increase their wealth, and it cannot be acquired without cost. D) sellers typically know more than buyers about the products they are selling.
Mergers between companies producing widely divergent goods is called a
A) conglomerate merger. B) diagonal merger. C) horizontal merger. D) vertical merger.
Since 1945, national defense expenditures as a percentage of GDP have _____
a. fallen from 41 percent to 3.7 percent b. fallen from 32.1 percent to 20.1 percent c. fallen from 62.3 percent to 11.5 percent d. fallen from 50.5 percent to 9.6 percent
The difference between sensitivity analysis and scenario analysis is
A) sensitivity analysis is a method for evaluating risk while scenario analysis is not. B) sensitivity analysis is based on regression analysis while scenario analysis is not. C) sensitivity analysis examines the impact on the overall results of a change in one variable while scenario analysis examines the impacts on overall results of changes in several variables at the same time. D) None of the above