A law requiring the government to balance its budget in each year would serve as an automatic destabilizer
Indicate whether the statement is true or false
TRUE
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Which of the following U.S. Treasury securities represents ownership of the national debt?
a. Bonds owned by the banks and insurance companies. b. Bonds owned by private individuals. c. Bonds owned by foreigners. d. All of these.
Economics is different from other social sciences because it gives special emphasis to the study of ______; it is similar to other social sciences because they are all concerned with the study of _______.
A) unlimited resources; economic systems B) human interactions; limited resources C) opportunity costs; choices D) social behavior; scarcity
In the short run, the firm's total cost equals:
A. the total fixed costs + the total variable costs. B. the average fixed costs + average variable costs. C. the average fixed cost + the marginal cost. D. the total variable costs only.
When lenders are unable to get good information about the worthiness of a project the lender has the problem of
A. adverse selection. B. moral hazard. C. moral selection. D. adverse hazard.