External debt rises from 5 percent of GDP to over 30 percent of GDP. This increase in external debt is:
A. a potential problem because government debt is no different from the debt of individuals.
B. not a potential problem because government debt differs from the debt of individuals.
C. a potential problem because repayment implies a net reduction in the income of an average citizen.
D. not a potential problem because repayment does not imply a net reduction in the income of an average citizen.
Answer: C
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The demand curve for a monopolist is:
a. the demand curve for the industry. b. less than the market demand curve. c. below the marginal revenue curve. d. nonexistent. e. the sum of the demand curves of the perfectly competitive firms in the industry.
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.