The United States need never pay off the national debt; it can simply refinance the debt when it comes due. The flaw in thinking that the government must pay it off is based on the fallacy of
a. benefit-cost ratio.
b. post hoc, ergo propter hoc.
c. composition.
d. a priori expectations.
c
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Define the term "property rights." Explain why the lack of well-defined and enforceable property rights is detrimental to the smooth functioning of a market system
What will be an ideal response?
The market supply curve for labor is
A) perfectly inelastic if leisure is an inferior good. B) determined by adding up the quantity of labor supplied by each worker at each wage, holding constant all other variables that affect the willingness of workers to supply labor. C) determined by adding up the wages each worker is willing to work for at a given quantity supplied, holding constant all other variables that affect the willingness of workers to supply labor. D) derived from the market supply curve for the output produced with labor.
According to the graph shown, what is the market price?
This graph represents the cost and revenue curves of a firm in a perfectly competitive market.
A. P1
B. P2
C. P3
D. Cannot tell from the graph.
For a particular good, an 8 percent increase in price causes a 4 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good?
a. There are many close substitutes for this good. b. The good is a luxury. c. The market for the good is broadly defined. d. The relevant time horizon is long.