Why is the ownership of the public debt an important issue?
What will be an ideal response?
There are two important possibilities here: (1) If the debt is held primarily by the wealthy in our society, then the interest payment on the debt contributes to income inequality as taxpayers pay the interest to those wealthy bondholders; and (2) If the debt is held substantially by those outside the country, then the interest payment on the debt represents a drain of resources from this country to others and there is a dependence on these lenders that may restrict U.S. independence.
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The figure above shows the market for milk. If the population increases, then the efficient quantity of milk ________ and the producer surplus ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
The provision of the Patient Protection and Affordable Care Act (ACA) which states that insurance companies are required to participate in a high-risk pool that will insure individuals with pre-existing medical conditions who have been unable to buy
health insurance for at least six months is the ________ provision. A) state health insurance marketplaces B) employer mandate C) individual mandate D) regulation of health insurance
Since 1972, the world price of oil has been largely determined by OPEC, which controls about 75 percent of the world's proven oil reserves. Since 1972 the price of oil has
A) fluctuated. OPEC's situation is an example of a prisoner's dilemma. B) risen slowly, but steadily. Members of OPEC fear that if they raise the price of oil too quickly this will lead oil-buying nations to accuse OPEC of price gouging, which is illegal under international law. C) been tied by OPEC to the rate of inflation in the United States. If, for example, the rate of inflation is 5 percent in one year, OPEC will raise the price of oil by 5 percent the next year. D) steadily fallen through the 1970s, then risen continually in the years since then. OPEC's actions are an example of implicit collusion.
Using the income approach, the smallest component in the calculation of GDP is:
a. net interest. b. rental income. c. profits. d. compensation of employees.