Because the government must pay interest on the public debt, its ability to balance the budget or fund public sector activities is reduced.
Answer the following statement true (T) or false (F)
True
Interest payments restrict the government's ability to balance the budget or fund other public sector activities.
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Refer to Reducing Long-Run Labor Usage. The scale effect of the wage change is the movement from point
a. X to point A.
b. X to point B.
c. B to point C.
d. C to point D.
A monopolist may choose a price lower than the profit maximizing price because?
a. its costs curves are not the most efficient in the market b. it wants to prevent the government from deciding to regulate the monopoly c. the market prefers a lower price d. it want to encourage potential competitors to enter the market
The following is not an example of risk aversion
a. you lock your garage when you have expensive workshop tools b. you are more careful when you buy a more expensive car c. Individuals tend to gamble more with their money when the future is uncertain d. you only go swimming when the lifeguard is on duty
A ________ is known as a combination or cartel consisting of firms that place their assets in the custody of the board of trustees.
Fill in the blank(s) with the appropriate word(s)