What is the difference between federal purchases and federal expenditures?
What will be an ideal response?
Federal purchases refer to federal spending where the federal government receives a good or service in return, like an aircraft carrier. Federal expenditures include federal purchases plus interest on the national debt, grants to state and local governments, and transfer payments.
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Walmart wants to raise $250 million to finance the renovation of their retail stores, and the company wishes to raise the funds through indirect finance. Which of the following methods could it use?
A) It could issue $250 million in stock. B) It could sell $250 million in bonds. C) It could borrow $250 million from a bank. D) It could choose either A or B.
Because monopolists charge a price in excess of marginal cost, it must be the case that monopolists:
A. earn a negative economic profit. B. produce more than the socially optimal level of output. C. earn a positive economic profit. D. produce less than the socially optimal level of output.
Refer to the information provided in Figure 16.1 below to answer the question(s) that follow. 
Figure 16.1 Refer to Figure 16.1. The ________ imposed as a result of producing the market (unregulated) level of fertilizer is $300.
A. marginal private cost B. total damage C. marginal social cost D. tax
A cartel's profit-maximizing quantity occurs where the cartel's
a. marginal cost equals marginal revenue b. marginal cost equals demand c. price is highest d. cost is lowest e. demand curve has a kink