A true and unambiguous burden on future generations will be created whenever government deficit spending
A) increases the ratio of government expenditure to GDP.
B) pays for goods that yield no future benefits.
C) is used as part of a countercyclical fiscal expansion.
D) pays for capital expenditures.
B
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Refer to the scenario above. Suppose the discount weight attached to the future benefit is 1/5. People will earn a net benefit equal to:
A) -500 utils. B) -700 utils. C) 860 utils. D) 900 utils.
On a national level, the concentration ratio for grocery stores is very low. But, the "true" market for grocery stores is local in nature. What limitation does the geographic market put on the measure of concentration for grocery stores?
A) On the local level, grocery stores are more concentrated than they appear on the national level. B) On the local level, grocery stores are not as concentrated as they appear on the national level. C) The level of concentration is overestimated when viewing the national level. D) Both answers A and C are correct.