The idea that a large national debt is "mortgaging the future of our children and grandchildren" is misleading because:
A. it is the Federal Reserve that will be responsible for making interest payments on the debt.
B. future generations will have to bear the opportunity costs of the resources that are used today.
C. future generations will not be liable for the interest obligations of the national debt.
D. future generations will inherit the interest income as well as the interest obligations.
Answer: D
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When natural or legal forces work to protect a firm from potential competitors, the market is said to have ________
A) non-competitive supply B) non-competitive entry C) barriers to entry D) restricted competition
Ocean Spray is considered to be an oligopoly firm because, until the 1990s, it faced little competition in the market for fresh and frozen cranberries. Why?
A) Ocean Spray had a patent on the production of cranberries that gave the company the exclusive right to market its product for 20 years. The 20-year period ended in the 1990s. B) The federal government imposed a high tariff on cranberry imports. During the 1990s the tariff was eliminated, but Ocean Spray still controls about 80 percent of the cranberry market. C) Until the 1990s, Ocean Spray controlled almost the entire supply of cranberries. D) Ocean Spray was able to achieve significant economies of scale in the production of cranberries. Beginning in the 1990s, other firms finally achieved economies of scale as well, but Ocean Spray still controls about 80 percent of the cranberry market.
Medicare requires individuals to take a standard health test first, but Medicaid does not.
A. True B. False C. Uncertain
Define the following terms and explain their importance to the study of macroeconomics:
a. Phillips curve b. rational expectations c. indexing d. stagflation