What is the difference between government deficit and government debt?
The difference between the deficit and the debt lies in the timeframe considered. A government deficit (as well as a government surplus) is the difference between tax revenues and government spending over a given period of time, typically a year. The government debt, on the other hand, is the government's accumulated indebtedness over time—the sum of all past deficits and surpluses.
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If long-run average total cost decreases as output increases, this is due to:
A. Declining average fixed costs B. The law of diminishing returns C. Economies of scale D. Externalities
As trade restrictions are eliminated, increased imports
A. Shift the allocation of resources away from import-competing industries. B. Leave the composition of the GDP unchanged. C. Redistribute income out of import-using industries. D. Lower competition in product markets.