Eventually, external debt must be repaid with the export of real goods and services.
Answer the following statement true (T) or false (F)
True
External financing temporarily eliminates the opportunity cost of financing increased government expenditures. At some point, foreign debt holders will want to collect their bills. To do this, they will cash in (sell) their bonds, and then use the proceeds to buy U.S. goods and services. When this happens, the United States will be exporting goods and services to pay off its debts.
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Goods are scarce because
a. of greed; if human beings were not so selfish, goods would not be scarce. b. the desire for goods is far greater than their availability from nature. c. of competition; if people were not so competitive, it would be possible to satisfy people's desire for material goods. d. of private property; if things were not owned privately, scar
Assume 300 billion pounds of Ostrich meat is produced per year when the price is 50 cents per pound, and 500 billion pounds when the price is 60 cents per pound. The supply of Ostrich meat, other factors held constant, is:
A. price elastic. B. price inelastic. C. income elastic. D. income inelastic.
Other things equal, we would expect the labor demand curve of a monopolistic seller to:
A. decline more rapidly than that of a purely competitive seller. B. decline less rapidly than that of a purely competitive seller. C. decline at the same rate as that of a purely competitive seller. D. be more elastic than that of a purely competitive seller.
Refer to Figure 11-13. The lines shown in the diagram are isocost lines. Which of the following shows an increase in the price of labor while the price of capital remains unchanged?
A) the movement from BF to CE B) the movement from BF to BD C) the movement from AF to BD D) the movement from AF to CE