Accumulating debt poses a problem for the U.S. federal government because
A) it is currently in danger of defaulting on the debt.
B) the debt has to ultimately be paid off.
C) building roads and bridges do not yield enough benefits to justify their cost.
D) a large debt-to-GDP ratio causes crowding out.
D
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The term factor of production refers to
A. Any resource input used to produce goods and services. B. Only those goods that are produced and then used to produce other goods and services. C. Labor only. D. Factories and machinery only.
Which of the following is not an automatic stabilizer?
A. Personal income tax revenue. B. Corporate income tax revenue. C. Unemployment compensation benefits. D. Property tax revenue.
What does the GDP gap measure?
What will be an ideal response?
A growing number of cigar manufacturers in the Caribbean and Central America have begun producing and exporting cigars to the U.S. market. How has this affected the equilibrium price and quantity of cigars?
What will be an ideal response?