Suppose a country has a national debt of $5,000 billion, a GDP of $20,000 billion, and a budget surplus of $130 billion. How much will its new national debt be?
A) $5,130 billion
B) $4, 870 billion
C) $15,130 billion
D) $19, 870 billion
Ans: B) $4, 870 billion
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How does the demand curve facing a home monopolist compare in a no-trade situation to a situation in which a quota protects the monopolist's output?
a. They are identical. b. The quota-protected demand curve lies to the right of the no-trade demand curve. c. The quota-protected demand curve lies to the left of the no-trade demand curve. d. The no-trade demand curve is perfectly price elastic at the world price; the quota-protected demand curve has a negative slope.
Which of the following categories of federal spending is the largest in the United States?
A) interest on federal debt B) mandatory spending C) discretionary spending D) national defense