It is important to distinguish between the privately held portion of the national debt and the portion held by government agencies and the Federal Reserve system because
a. the government will not have to repay the privately held debt.
b. only the privately held debt creates a net interest liability for the federal government.
c. the privately held debt does not create a net interest liability for the federal government.
d. taxes will have to be raised in order to pay the interest on the debt held by the Federal Reserve system.
B
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A duopoly is a form of
A) perfect competition. B) monopolistic competition. C) oligopoly. D) monopoly.
In 1950, a phone call at a pay phone cost 5 cents and a first-class stamp cost 3 cents. Today, those prices are 50 cents and 49 cents respectively
What has happened to the price of each good relative to the other? What has happened to the price of each good relative to all other goods?
Marginal profit is the additional profit that accrues to the firm when the output rises by one unit
a. True b. False Indicate whether the statement is true or false
If government officials break a natural monopoly up into several smaller firms, then
a. competition will force firms to attain economic profits rather than accounting profits. b. competition will force firms to produce surplus output, which drives up price. c. the average costs of production will increase. d. the average costs of production will decrease.