Crowding out is most likely to occur when the federal government:
A. Runs a surplus and pays off part of the debt.
B. Balances the budget.
C. Runs a deficit and raises taxes to generate more revenue.
D. Runs a deficit and borrows money to finance its spending.
D. Runs a deficit and borrows money to finance its spending.
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A common assumption that economists make about the behavior of elected officials is that they try to
a. maximize the size of their government salaries b. maximize the size of their control over the budget process c. maximize the number of votes they receive in the next election d. minimize the government's expenditures in order to balance the budget e. conform to the wishes of special interest groups so that the government behaves as a single, consistent decision maker
If a perfectly competitive firm sells 10 units of output at a market price of $5 per unit, its marginal revenue per unit is:
a. $5. b. $50. c. more than $5 but less than $50. d. less than $5.