Both the International Monetary Fund and the World Bank were established

When the government's outlays exceed its tax revenues, the national debt

A) shrinks thanks to the budget surplus. B) grows to finance the budget deficit. C) grows to finance the budget surplus. D) shrinks thanks to the budget deficit. E) does not change because it has nothing to do with government outlays and tax revenue.

Suppose that once a well is dug, water flows out of it continuously without any additional effort. Customers collect their water and pay a per gallon fee when they leave the site of the well. In the short run, the competitive firm in this market

A) has no variable costs. B) has no fixed costs. C) will shut down. D) can produce water at no cost.