If the debt is financed externally, then the burden is incurred when the debt is financed.
Answer the following statement true (T) or false (F)
False
The debt held by foreign households and institutions is known as the external debt. At the time the debt is sold externally, there are no opportunity costs. Instead of having to move along the production possibilities curve, external borrowing allows us to consume beyond the production possibilities curve.
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You're called in as a consultant: Price is $24 . At a production level of 200 units, MC = MR, AFC = $6, and AVC = $16 . What do you advise this firm to do?
a. Increase output. b. Decrease output. c. Shut down operations. d. Stay at 200 units; the firm is earning $400 profit. e. Stay at 200 units; the firm is minimizing losses of $200.
Refer to the above figure. If box D represents the product market and flow (6) represents consumption expenditures, then box C is:
A. businesses, flow (7) is goods and services, and flow (8) is revenue. B. businesses, flow (7) is revenue, and flow (8) is goods and services. C. households, flow (7) is goods and services, and flow (8) is revenue. D. households, flow (7) is revenue, and flow (8) is goods and services.
When a resource is being depleted and becomes scarce, the market’s way of encouraging conservation is for the price of the resource to rise, without any government intervention.
Answer the following statement true (T) or false (F)
Intermediate goods and services are:
A. used only as inputs to produce something else and are not counted as separate items in GDP. B. goods that consumers buy in parts-like a new tire for their car-and are included as separate items in GDP. C. goods that consumers buy in parts-like a new tire for their car-and are not included as separate items in GDP. D. used only as inputs to produce something else and are counted as separate items in GDP.