Which of the following correctly describes a way in which deficit spending can impose a burden on future generations?I.Failure to allocate deficit spending to uses that boost future real Gross Domestic Product (GDP) will require taxing future generations at a higher rate to repay the resulting higher public debt.II.Government deficits that lead to higher employment and real Gross Domestic Product (GDP) in the future will generate increased income taxes for future governments, which will respond by spending the higher tax revenues, creating higher future government budget deficits.III.Other things being equal, deficit spending fuels increased consumption of goods and services by the current generation that crowds out capital investment, thereby leaving future generations with a smaller
stock of capital than otherwise would have existed.
A. I only
B. II only
C. I and III only
D. II and III only
Answer: C
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Suppose that opportunity costs in India and Australia are constant. In India, maximum feasible hourly production rates are either 0.3 unit of cloth or 0.2 unit of food
In Australia, maximum feasible hourly production rates are either 0.5 unit of cloth or 0.5 unit of food. It is correct to state that A) India has a comparative advantage in producing cloth. B) India has a comparative advantage in producing both cloth and wheat. C) India has no comparative advantage in producing cloth or wheat. D) Australia has a comparative advantage in producing cloth.
The theory of consumer choice is representative of how consumers make decisions but is not intended to be a literal account of the process
a. True b. False Indicate whether the statement is true or false
In The Distinguished Gentleman, Eddie Murphy plays a con man with a name similar to that of a long-running congressional representative. When the politician dies, Murphy runs for office using the politician's name: Jeff Johnson. He's careful not to go on camera but uses taglines in commercials such as "Johnson: The name you trust." He eventually achieves a slim victory. How does Murphy's character use voter ignorance to win the election?
A. He's expecting most voters not to investigate him too much. B. He's expecting most voters to neither investigate him too much nor know that their congressman died. C. He's expecting that most people won't remember his campaign promises. D. He's expecting most voters not to know their congressman died.
Assume the following demand and supply equation for a pesticide market:
Qd = 30,000 – 5000P Qs = 10,000P A. Calculate the perfectly competitive industry equilibrium price and output. B. Assume that the firms in this industry organized into a cartel. Calculate the industry output and price. C. Compare your answers for items a and b. Briefly describe the effect that organizing into a cartel had on price and output.