Government debt held by citizens of a country is:
A. more like an individual's debt because paying interest on it involves no net reduction in domestic income.
B. more like an individual's debt because paying interest on it involves a net reduction in domestic income.
C. less like an individual's debt because paying interest on it involves no net reduction in domestic income.
D. less like an individual's debt because paying interest on it involves a net reduction in domestic income.
Answer: C
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Consider the following:
(i) Consider an uncrowded highway that has limited access. Is this good nonrivalrous, nonexcludable, or both? Explain. (ii) Consider a major city's downtown streets during rush hour. Is this good nonrivalrous, nonexcludable, or both? Explain.
The most important source of funding for Medicare is
a. the federal income tax. b. premiums paid by elders and deducted from their monthly Social Security checks. c. a 2.9 percent payroll tax paid by all workers, regardless of their age. d. proceeds from the Medicare Trust Fund. e. a tax on the health insurance premiums pay by all group plans.
The market basket approach:
A. gives us a single number that represents how changing prices affect the typical consumer. B. gives us a list of what the typical consumer buys and the average price change of those goods. C. tells us how the prices of all goods and services in an economy change over time. D. tells us exactly how people change what they buy from year to year.
Does economic growth eliminate scarcity?