A(n) _______ does not pose the problem of scarcity; one use of the good is not an alternative to another use.

Government is viewed in the economic way of thinking as many different people interacting on the basis of

A) fear of punishment rather than hope for reward. B) legal considerations rather than profitability. C) prevailing property rights. D) principles of cooperation rather than of competition. E) regard for the public interest rather than private interest.

Starting with a situation where there is a substantial budget deficit, when tax revenues grow faster than federal expenditures, the government will experience:

a. a balanced budget. b. an increasing national debt. c. a declining budget surplus. d. a declining budget deficit. e. an increasing budget deficit.