Which of the following is a valid concern about the national debt for a country whose debt is held entirely by its citizens?
a. The welfare of future generations will be directly related to the per-capita size of the national debt that they inherit.
b. Growth of the national debt will eventually lead to the bankruptcy of the government.
c. When the debt comes due, future generations may be unable to pay it off.
d. If the increases in the national debt reduce private expenditures on capital formation, future generations may have lower incomes because they will inherit a smaller stock of capital.
D
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What most accurately describes the trend in the Gross Domestic Product of the US between 1870 and 2007?
a. Real GDP increased by about two percent per year. b. Although nominal GDP increased significantly, real GDP went up only slightly because of inflation. c. Both nominal and real GDP have been flat because the periods of inflation were offset by the periods of deflation. d. The fluctuations in GDP have become greater over time, and were largest in the late 1900s.
The requirement that firms doing business with the federal government set numerical hiring, promotion, and training goals to reduce discrimination was
a. included in the Civil Rights Act of 1964 b. signed by President Johnson c. first proposed in the Nixon administration d. first proposed in the Carter administration e. first proposed in the Equal Rights Amendment
Consider the following statements:
a. Car owners purchase more gasoline from a gas station that sells gasoline at a lower price than other rival gas stations in the area.
b. Banks do not take steps to increase security since they believe it is less costly to allow some bank robberies than to install expensive security monitoring equipment.
c. Firms produce more of a particular DVD when its selling price rises.
Which of the above statements demonstrates that economic agents respond to incentives?
A) a only
B) b only
C) c only
D) a and b
E) a, b, and c
In a perfectly competitive market,
A. all firms produce and sell a standardized or undifferentiated product. B. firms are price-setters. C. the output sold by a particular firm may be quite different from the output sold by the other firms in the market. D. it is difficult for new firms to enter the market due to barriers to entry.