Suppose an economist is analyzing the impact of a debt and its ability to be paid. That economist will focus on
A. both the ratio of the debt to GDP and the interest payments as a percentage of GDP.
B. strictly the debt.
C. strictly the ratio of the debt to GDP.
D. strictly the inflation-adjusted amount of debt.
Answer: A
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If the demand for a good is perfectly elastic, then the demand curve is horizontal
Indicate whether the statement is true or false
What leads to chronic deficits on U.S. current account?
a. declining value of the dollar and uncertainty about its future b. devaluation of the dollar c. imports being greater than exports year after year d. foreigners buying up U.S. assets in the U.S. year after year e. more exports and fewer imports year after year
A firm's demand for labor is referred to as a derived demand because
A. The quantity of goods and services labor can purchase is derived from the wages labor receives from the firm. B. It is derived from the supply of labor. C. It is derived from the MPP of labor. D. It is derived from the demand for the product that the labor is producing.
At an output of 12, ATC is $12 and price is $9. At an output of 13, ATC is $12.40 and price is $9. MC = MR at an output of 12.6. At that output the firm will
A. take a loss. B. break-even. C. make a profit.