Explain why the portion of the national debt owed to foreigners is a serious matter, whereas the portion owed to U.S. citizens is of less concern. Why does the U.S. national debt pose less of a problem than the debts of Greece in 2010?
The portion owed to foreigners will reduce Americans' future wealth. The money will have to be paid by U.S. taxpayers in the future. The portion owed to U.S. citizens represents a future transfer payment from some U.S. citizens to other U.S. citizens. The taxes paid to make these payments will be used to repay principal and interest to U.S. citizens. In contrast to Greece in 2010, which did not owe their debt in a purely domestic currency, the U.S. debt owed to foreigners is debt owed in dollars. This makes the U.S. debt less of a bankruptcy problem or financial crisis problem and more of an inflationary or wealth transfer problem.
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Which of the following is true about the United States?
A. There have been recessions approximately every ten years. B. The pattern of recessions does not occur on a regular basis. C. Periods of economic growth and recessions occur in two-year patterns. D. Recessions always last less than one year. E. Recessions in the United States are generally more severe than they are in other countries.
Alfred Kahn's plan for airline deregulation emphasized
a. marginal cost pricing of tickets. b. average cost pricing of tickets. c. federal subsidies for certain airlines. d. increased federal taxes on airline profits.
Exhibit 6-13 Cost curves
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In Exhibit 6-13, ATC is shown by the graph labeled:
A. I. B. II. C. III. D. V.
The value of marginal product equals
A) total revenue divided by total product (output). B) marginal revenue divided by marginal product. C) total revenue multiplied by total product (output). D) good's market price multiplied by marginal product.