Which of the following is a reason why government debt is different from individual debt?
A. Government debt must be repaid at some point in time.
B. Government can create money to finance its debt.
C. Government debt can be owed to foreigners, unlike the debt of individuals.
D. Government has fewer sources of income to finance its debt than individuals.
Answer: B
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The figure above shows a labor market. If there is a monopsony in this labor market, then increasing the minimum wage from $3 per hour to $5 per hour
A) will increase the quantity of labor employed. B) will leave unchanged the quantity of labor employed. C) will decrease the quantity of labor employed. D) could increase, decrease, or leave unchanged the quantity of labor employed.
Many manufactured goods have an ________ supply if production plans have only a short period to change and as time passes and all production adjustments are made, the supply of the good ________ from the initial response
A) inelastic; increases B) elastic; decreases C) elastic; increases D) inelastic; decreases E) inelastic; does not change
The balance of payments summarizes the transactions that occur during a given time period between
a. the government of one country and the government of another country b. the national government and local governments in the same country c. individuals, firms, and government of one country and individuals, firms, and governments throughout the rest of the world d. individuals, firms, and governments of two countries e. non-government residents (individuals and firms) of two countries
Global warming has become a major international environmental issue. Using the concept of externality, explain why countries around the world seldom reach an agreement to reduce the use of fossil fuels.
What will be an ideal response?