Which of the following statements about the U.S. national debt is not correct?
A. The national debt represents both a liability and asset to future generations.
B. The primary economic costs of the debt are being passed on to future generations.
C. The primary burden of the debt is incurred when the deficit-financed activity takes place.
D. Future generations will bear some of the debt burden when crowding out occurs.
Answer: B
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The F-test is used to determine if
A) a regression coefficient is significant. B) multicollinearity exists. C) a regression equation significantly accounts for the variation in the value of a dependent variable. D) an identification problem is present.
In the money market, if the money supply decreases, the opportunity cost of holding money: a. decreases and the quantity of money demanded increases
b. decreases and the quantity of money demanded falls. c. increases and the quantity of money demanded falls. d. increases but the quantity of money demanded remains unchanged. e. increases and the quantity of money demanded also increases.
If workers demand wage compensation in advance of inflation, the economy’s aggregate supply curve will
A. have a positive slope. B. have a negative slope. C. be vertical. D. be horizontal.
A bakery operating in competitive markets sells its output for $20 per cake and rents ovens at $30 per hour. To maximize profit, it should rent ovens until the marginal product of an oven is
a. 2/3 cake per hour. b. 3/2 cakes per hour. c. 25 cakes per hour. d. 10 cakes per hour.