Assume Congress decides that Social Security taxes must increase in order to fund the system. This would
A) shift up the marginal cost curve for any firms that hire labor.
B) guarantee a decrease in profits.
C) shift up the average fixed cost curve for any firms that hire labor.
D) guarantee an increase in tax revenues.
A
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Gross public debt is
A) the total value of budget deficits plus budget surpluses over the past five years. B) an excess of government spending over government revenues during a given time period. C) a situation in which the government's spending is exactly equal to the total taxes and other revenues it collects during a given time period. D) all federal government debt irrespective of who owns it.
Suppose the production of a good results in negative externalities. If all costs are taken into account, then
A. output will be at a lower level than if all costs are not taken into account. B. output will be at a lower level than the socially optimal level. C. the marginal private cost curve will lie above and to the left of the marginal social cost curve. D. a and b E. a, b, and c