When Congressional decision makers chose not to raise taxes to fight the war on terrorism, they
A. eliminated the opportunity cost of war.
B. exploited the fact that borrowed money has no opportunity cost.
C. borrowed the money, moving the opportunity cost into higher interest rates and/or crowding out.
D. printed all of the money required to fight the war on terrorism.
Answer: C
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According to the efficiency wage model, firms will pay the real wage that
A) maximizes workers' marginal productivity. B) maximizes the marginal productivity of capital and the marginal productivity of labor together. C) maximizes effort per dollar of real wage. D) minimizes hiring and training costs to the firm.
In Maslow's Hierarchy of Needs, what is the level that is least likely to be achieved?
a. Physiological b. Safety and security c. Belongingness d. Self-actualization
Government intervention may be appropriate to correct market outcomes because of
A. Externalities. B. Production possibilities. C. Private goods. D. None of the choices are correct.
The overall decline in death rates in the United States since 1981 was due to all of the following except
A) a decline in smoking. B) the decline in the population. C) the availability of new prescription drugs. D) new surgical techniques.