How has the U.S. government debt changed since 2008? What are the sources of the change in U.S. government debt?
What will be an ideal response?
Since 2008 the U.S. government debt has skyrocketed. The debt dramatically rose because federal government taxes fell (as a percent of GDP) while federal government expenditures and transfer payments, shot upwards. Federal government expenditures on goods and services rose but not nearly as much as transfer payments.
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A mail-order clothing company offers a discount if customers purchase two shirts instead of only one. This is necessarily an example of quantity discrimination
Indicate whether the statement is true or false
Empirically, women who are married to a spouse who has access to health insurance earn higher wages and are less likely to be offered employer-sponsored health insurance than are married women whose spouse does not have access to health insurance. This pattern
A. supports the theory of compensating differentials as it indicates there is a trade-off between wages and benefits. B. supports the theory of compensating differentials as it indicates there is no trade-off between wages and benefits. C. fails to provide support for the theory of compensating differentials. D. contradicts the result that the hedonic wage function is upward sloping. E. is unexpected as wages should be unrelated to fringe benefits.
The consumption and saving schedules reveal that the:
A. MPC is greater than zero but less than one. B. MPC and APC are equal at the point where the consumption schedule intersects the 45- degree line. C. APS is positive at all income levels. D. MPC is equal to or greater than one at all income levels.
Monopolistic competition is characterized by excess capacity because:
A. Firms are always profitable in the long run B. Firms charge a price that is greater than marginal cost C. Firms produce at an output level less than the least-cost output D. The demand for a product is perfectly elastic in this type of industry