Debt service
A. Is a discretionary component of the federal budget.
B. Is a redistribution, so it does not entail opportunity costs.
C. Does not cost the government because it can issue new debt.
D. Refers to the annual interest payments on the debt.
Answer: D
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An increase in demand is graphically represented as a
A) rightward shift of the demand curve. B) leftward shift of the demand curve. C) movement down and to the right on a demand curve. D) movement up and to the left on a demand curve.
To help pay for the cost of sport related injuries, the government imposes a tax on sellers of all sports equipment. Using the above figure, how much deadweight loss results from this tax on sports equipment?
A) cbd B) ced C) abd D) acd
The National Industrial Recovery Act, passed in 1933, was an attempt to
a. break monopolies and cartels, and introduce competition into several different industries. b. fix prices, wages, and quotas for several industries in an effort to keep prices high. c. lower corporate taxes and remove collusive behavior in an effort to keep U.S. firms competitive with foreign manufacturers. d. create a stable economic environment that would encourage investment and expansion in the industrial sector of the economy.
When a firm earns a normal rate of return, it
A. should shut down. B. breaks even. C. earns a profit. D. suffers a loss.