If crowding out occurs, the Main Burden of the debt is
a. smaller government assets passed along to the next generation.
b. smaller capital stock passed along to the next generation.
c. fewer government services during this generation.
d. higher debt payments passed along to the next generation.
b
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The "Anything-Can-Happen" theorem doesn't really imply "anything can happen" in a democratic process with multiple issues; rather, it implies that political outcomes can be manipulated, and some political institutions are better at constraining the degree to which this can be done than others. Do you agree or disagree with this statement? Why?
What will be an ideal response?
Graphically, a firm's total profit equals:
a. the distance between the firm's marginal revenue and marginal cost curves. b. the distance between the firm's demand and supply curves c. the distance between the firm's total revenue and total cost curves. d. the distance between the average revenue and marginal revenue curves.
In the long run, an increase in the money supply
a. leaves prices and unemployment unchanged. b. raises prices and unemployment. c. raises prices and leaves unemployment unchanged. d. leaves prices unchanged and reduces unemployment.
The real-income effect is typically small because
A) the change in price of one particular item has little effect on total purchasing power. B) income has no relation to consumption. C) price changes tend to balance out over time. D) real-incomes are always rising.