A major reason that the public debt cannot bankrupt the Federal government is because:
A. The public debt is mostly held by foreigners
B. The Federal government has the Social Security Trust Fund
C. The public debt can be easily refinanced by issuing new bonds
D. The Federal government can draw on its gold reserves
C. The public debt can be easily refinanced by issuing new bonds
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Mrs. Lovejoy decides to invest in companies which she believes can produce their goods at the lowest possible cost. Mrs. Lovejoy is investing in companies that are
A) always going to be profitable. B) productively efficient. C) both productively and allocatively efficient. D) allocatively efficient.
It has been argued that a monopolistically competitive industry involves "waste" because
A) there is too much product differentiation making shelves too crowded. B) they end up producing to the right of the minimum of the average total cost curve and the price is below the marginal cost. C) the firms do not equate marginal cost to marginal revenue to find the profit maximizing price and output. D) the firms do not produce at the minimum of the average total cost curve and price is above marginal cost.