If the economy is in a recession, which point in the graph shown would likely represent this?

When Lonnie produces 1 pair of cowboy boots his costs total $300. When he produces 2 pairs of cowboy boots his total costs are $500. This means that Lonnie's marginal cost of producing the second pair of cowboy boots is $200

Indicate whether the statement is true or false

The national debt

a. can be paid off without major economic effects b. need never be paid off c. is no more serious a problem than is a corporation's debt d. should not exist during a period of economic prosperity e. is the simple sum of post budget deficits