Which of the following is considered a legitimate concern of a large public debt?
A. Bankruptcy of the federal government.
B. Crowding-out of private investment.
C. Burdening future generations.
D. Collapse of the financial system.
B. Crowding-out of private investment.
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The last American niobium mine closed in 1959, and all U.S. niobium is now imported from other countries. This is
A. good for the United States because it is always better to import raw materials from other countries and export finished goods. B. bad for the United States because the niobium miners were put out of work. C. good for the United States because the resources used to mine niobium are freed to do something for which the United States has a comparative advantage. D. bad for the United States because the United States must give money to other countries in order to obtain niobium.
If a firm's long-run average total curve shows that it can produce 5,000 DVDs at an average cost of $2.00 and 15,000 DVDs at an average cost of $1.50, this is evidence of
A) diminishing returns. B) economies of scale. C) diseconomies of scale. D) the law of supply.
Refer to the information provided in Table 6.1 below to answer the question(s) that follow. Table 6.1Number of Hamburgers per DayTotal UtilityMarginal Utility130?252?367?476?5?4Number ofSodas per DayTotal UtilityMarginal Utility120?235?347?457?5?7Refer to Table 6.1. The marginal utility of the third hamburger per day is
A. 5. B. 15. C. 22. D. 67.
It shows the aggregate demand and aggregate supply schedule for a hypothetical economy.
Refer to the table above. If the quantity of real domestic output demanded increased by $1000 at each price level, the new equilibrium price level and quantity of real domestic output would be:
A. 150 and $2500
B. 250 and $2500
C. 200 and $2000
D. 300 and $3000