The national debt
a. will be zero when the federal budget is balanced.
b. has been shrinking in the last 30 years.
c. is equal to the government's budget deficit.
d. can grow without negative economic effects.
e. is a flow measure while the deficit is a stock measure.
D
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Which of the following is NOT a necessary precondition for economic growth?
A) economic freedom B) democracy C) property rights D) free markets E) ALL of the above are necessary preconditions.
If the value of a country's merchandise exports is less than the value of its merchandise imports, it is said to have a
a. trade surplus. b. trade deficit. c. current account surplus. d. capital account deficit.
The idea that transfer benefits to the poor encourage behavior that increases the risk of poverty is known as the
a. Samaritan's dilemma. b. rule of inverse benefits. c. implicit marginal tax law. d. Smith paradox.
Think of a firm that has a monopoly producing milk. The firm's demand curve is
a. identical to the demand curve for milk facing the industry b. identical to its marginal revenue curve c. tangent to the firm's ATC curve d. tangent to its marginal revenue curve e. more elastic than the demand curve of any perfectly competitive firm producing milk