When a budget deficit occurs in the United States, the U.S. Treasury finances this deficit by
A) borrowing.
B) imposing a moratorium of new government spending.
C) increasing the tax rate.
D) printing more dollars.
A
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This graph shows the marginal cost and marginal benefit associated with roadside litter clean up. Assume that the marginal benefit curve and marginal cost curve each have their usual slope. 
The socially optimal number of bags of litter removed from the roadside each day is:
A. 20. B. 15. C. 10. D. 30.
If the equilibrium price of aspirins is $2.50 and a price ceiling is imposed at $3.00, the eventual result after market adjustment will be a(n):
a. surplus. b. shortage. c. accumulation of inventories. d. equilibrium.
________________ is the analysis of how the burden of a tax is divided between consumers and producers:
a. Resale incidence. b. Price incidence. c. Cost incidence. d. Tax incidence.
A recessionary gap causes national debt to increase because
a. the growth in GDP slows. b. interest on previously incurred debt must be paid. c. recessionary periods require huge buildups of defense materials. d. income tax receipts drop off markedly.