Which of the following is NOT a problem with excessive debt?

A) It worsens the central government's budget position by adding large debt service payments to other budget items.
B) It reduces the quantity of resources available to invest in economic development.
C) If debt service is substantial, schools, health clinics, roads, ports, other infrastructure, and social needs are less likely to be addressed.
D) It can reduce the chance of a crisis.


D

Economics

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Suppose that Rosa is considering migration to another country. To move, she will have to spend $5000 on transportation and $4000 in application and other processing fees. Rosa's stream of future earnings in her home country is $500,000. She expects to earn a stream of future earnings of $800,000 in another country. Based on this information, Rosa will decide to migrate as long as the implicit costs of leaving her friends and family and adjusting to a new culture are:

A. Greater than $509,000 B. Less than $300,000 C. Less than $91,000 D. Less than $291,000

Economics

Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 

A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C

Economics

The market supply curve for music downloads is Q = 135(P-1 ) where Q is millions of downloads and P is the price in dollars per track

If the current price is $1.20 per download, what is the change in producer surplus if the price increases by $0.20 per track? A) $5.4 million B) $8.1 million C) $10.8 million D) $27 million

Economics

In the AD/AS model, a point where the economy's long-run AS curve, short-run AS curve, and AD curve all intersect at a single point represents a point where:

a. real GDP is equal to its full-employment level. b. all of these choices. c. the conditions of short-run equilibrium are fulfilled. d. the conditions of long-run equilibrium are fulfilled.

Economics