The national debt is
A) the sum of the personal debt of all citizens in the United States.
B) the cumulative effect of all past budget deficits and surpluses of the federal government.
C) the difference between a nation's exports and imports of goods and services.
D) equal to the current size of the budget deficit.
B) the cumulative effect of all past budget deficits and surpluses of the federal government.
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We would expect that a fall in labor supply will have a proportionately larger effect on the market wage rate when
A) capital goods exist that can replace many of the workers. B) the product produced in the industry has several close substitutes. C) the product produced in the industry makes up a large portion of most families' budgets. D) labor represents a relatively small portion of total costs.
National income:
a. is included in gross private domestic investment. b. includes the sum of all payments made to resource owners for the use of their resources. c. includes depreciation. d. is often measured as C + I + G + (X ? M).
Substitution bias:
a. overstates the rise in a consumer’s true cost of living. b. understates the rise in a consumer’s true cost of living. c. overstates the decrease in a consumer’s true cost of living. d. understates the decrease in a consumer’s true cost of living.
Rent seeking
a. often entails large opportunity costs. b. prevents waste of resources. c. often promotes fairness in distribution of resources. d. cannot occur in a planned economy.