Net interest payments by the government are usually
A) small and sometimes negative for both the federal, and state and local governments.
B) small and sometimes negative for the federal government, but large and positive for state and local governments.
C) small and sometimes negative for state and local governments, but large and positive for the federal government.
D) large and positive for both the federal, and state and local governments.
C
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Generally, ________ motivates firms to enter an industry, while ________ motivates firms to exit an industry.
A. accounting profit; accounting loss B. economic profit; economic loss C. economic profit; accounting loss D. accounting profit; economic loss
If government increases spending and wants to maintain a balanced budget, it should
A) increase taxes by an amount equal to the increase in spending multiplied by the tax multiplier. B) decrease taxes by an equal amount. C) increase taxes by an equal amount. D) decrease taxes by an amount equal to the increase in spending multiplied by the tax multiplier.
Following a major natural disaster that destroys housing, a rent ceiling ________ be an effective policy to increase the quantity of more affordable housing for displaced residents because it would ________
A) would not; discourage rebuilding and result in a shortage B) would not; cause the quantity supplied to exceed the quantity demanded C) would; cause increased search activity D) would; create a black market that would result in a lower rent E) would; encourage a greater quantity supplied
Which is the most accurate statement?
A. There are generally large economies of scale available to perfect competitors. B. Perfect competition is an ideal state of affairs, which unfortunately, does not exist in any industry. C. A perfectly competitive industry often has substantial barriers to entry. D. Although perfect competitors produce an identical product, they do compete on the basis of price.