Deficit spending and a large national debt can have important effects on future generations because they
a. make it possible for those living in the present to pass the opportunity costs of current government spending on to future generations.
b. can significantly impact spending on capital formation.
c. will pass interest obligations on to future generations with no corresponding benefits.
d. will cause the government to go bankrupt.
B
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All decisions involve opportunity cost.
Answer the following statement true (T) or false (F)
Structural unemployment
A) falls during the expansion phase of the business cycle. B) falls as the pace of technological progress increases. C) generally lasts longer than frictional unemployment. D) falls when the government provides more generous unemployment compensation benefits.
A nation with cheap, efficient communications is likely to be...
What will be an ideal response?
In a market economy, what encourages firms to develop new products and production processes?
A. contracts B. insurance C. patents D. accounting rules