The public debt neither adds to nor subtracts from national production or consumption, but
a. if the bondholders are only the rich, the rich lose in the long run
b. poorer people, because they hold fewer bonds, end up paying less taxes
c. no individuals lose because everyone holds debt
d. individuals may gain or lose depending on whether they hold debt
e. neutrality of the debt means it is a win/win situation for everyone
D
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At the time it collapsed in 1991, the Soviet Union possessed all of the factors that promote increases in economic growth except:
A. a large stock of capital. B. abundant natural resources. C. a political and legal environment that promoted economic productivity. D. a highly educated worker force.
Labor strikes are a significant cause of lost production.
Answer the following statement true (T) or false (F)
Unintended changes in inventories:
A. cause the economy to move away from the equilibrium GDP. B. are treated as components of consumption. C. bring actual investment and saving into equality only at the equilibrium level of GDP. D. bring actual investment and saving into equality at all levels of GDP.
In a market economy, who or what determines who produces each good and how much is produced?
a. the government b. lawyers c. lotteries d. prices