Which of the following statements is FALSE?
A) The federal budget deficit in 2004 was about 4 percent of the GDP.
B) During the past five years, the U.S. public debt has been increasing.
C) The public debt of $25 billion is the accumulated debt of all U.S. individuals, firms, and institutions.
D) A budget deficit of $25 billion in a given year increases the public debt by $25 billion.
C
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If long-run average cost increases as firm size increases, then the firm is experiencing:
a. diminishing marginal returns. b. economies of scale. c. increasing marginal returns. d. diseconomies of scale.
In the definition of marginal propensity to consume, marginal refers to ______.
a. the amount of extra taxes someone pays as a result of government purchases b. the total income someone receives as a result of government purchases c. the additional amount of disposable income someone receives d. the amount of additional income spent on consumer goods and services