A higher deficit in the current year will lead to increased debt in the future only if
A) the deficit is greater than the previous year's deficit.
B) the deficit-to-GDP ratio is greater than the debt-to-GDP ratio.
C) it causes a drop in private saving.
D) it causes an increase in private saving.
E) none of the above
E
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The central bank of the United States is called:
A. Bank of the United States. B. AmeriBank. C. Bank of America. D. the Federal Reserve System.
The marginal factor cost of a monopsonist is
A) upward sloping and the same as the supply curve. B) downward sloping when the supply curve of labor is upward sloping. C) upward sloping and rises faster than the supply curve. D) horizontal.
In a long-run perfectly competitive equilibrium,
a. marginal cost and marginal revenue are the greatest distance apart b. barriers to entry are established by entrenched firms c. the typical firm will earn an economic profit d. average total cost is rising e. price and marginal cost are equal to minimum short-run and long-run average total cost
What's the rule: Monopolists charge a higher markup when demand is highly elastic or when it's highly inelastic?