What reasons can you suggest for arguing that the federal government, unlike individuals, need never run a surplus budget?
When individuals run up debt, it must be eventually repaid. People in debt pay someone else. In the case of
the federal government, however, the people who get paid are the very people who must pay. In a real
sense, they pay themselves. The equation is simple: Interest paid out equals taxes paid in.
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If an economy is allocatively efficient, it must be producing
A) beyond its production possibilities frontier. B) inside its production possibilities frontier. C) on its production possibilities frontier. D) the goods and services that are the most expensive. E) the goods and services that are the least expensive to produce.
Use the idea of external costs to explain why some cities have laws against late-night rock concerts
What will be an ideal response?