Which of the following is true of debt financing?
a. Elected political officials will find debt financing attractive because it allows them to provide voters with visible current benefits while pushing the more visible costs into the future.
b. Debt financing is unattractive to elected political officials because voters recognize that excessive debt will lead to the future collapse of the economy.
c. Debt financing is attractive to elected political officials because countries with a higher debt to GDP ratio generally grow more rapidly.
d. Elected political officials will be reluctant to run budget deficits because they recognize that taxes will have to be raised in the future to pay the interest on the larger amount of outstanding debt.
A
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Assume that the government of the state of New Jersey has determined that a large number of injuries and deaths have occurred as a result of accidents involving the installation and repairs of electrical equipment at private residences
In reaction to this problem the state assembly decided to pass a law which made a requirement that all certified electricians take and pass a tougher state licensing examination. Analyze the impact that this law is likely to have on the market for electricians and explain why safety may not necessarily improve.
When a firm's demand fluctuates randomly,
A) no profit can be earned on the inventory. B) the optimal inventory maximizes the profit of the inventory. C) the profit-maximizing inventory is found where the expected marginal benefit exceeds the expected marginal cost. D) managers cannot use marginal analysis to determine the optimal inventory.
If a person had increasing marginal utility, then the decline in utility from losing $1,000 would be greater than the increase in utility from gaining $1,000
a. True b. False Indicate whether the statement is true or false
If a nation has a higher level of technology than another nation it can produce:
A. more with no use of human capital. B. more outputs with the same level of physical capital. C. less with the same amount of physical capital. D. the same output with the same level of inputs.