When the government borrows funds in order to pay for its current expenditures,
a. the government will have to repay the borrowed funds within five years.
b. the government can spend without having to increase taxes, either now or in the future.
c. future taxes will have to be higher in order to pay the interest on the borrowed funds.
d. the cost imposed on the private sector is virtually eliminated because taxes can remain constant.
C
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At a certain level of production, the marginal revenue and marginal cost of a monopolist are $8 and $6, respectively. Which of the following statements is true in this context?
A) The monopolist should expand production. B) The monopolist should contract production. C) The profits of the monopolist are maximized. D) The profits of the monopolist are minimized.
An increase in per capita income will generally lead to
a. more material goods, but a decline in the quality of the environment. b. a reduction in life expectancy because working conditions are less desirable. c. an increase in the number of hours worked by residents. d. an increase in the living standards of most people.
A relatively flat demand curve indicates that
a. quantity demanded will adjust only slightly to a price change. b. quantity demanded will adjust significantly to a price change. c. quantity demanded will not adjust to a price change. d. the change in quantity demanded will exactly equal a change in price.
The voting outcome and the most preferred outcome of the median voter are the same in a simple majority vote where there are several options from which to choose
Indicate whether the statement is true or false