Debt Is Measured Relative to GDP Because

question 6

Multiple Choice

Debt is measured relative to GDP because:

• A)the ability of a country to pay off its debt depends on its productive capacity.
• B)the ability to produce output depends on the size of the nation's debt.
• C)GDP is always used as a reference point in economics.
• D)as long as this ratio remains high, the government will have no trouble repaying the debt.

Understand the role of government in providing public goods and addressing externality issues.

Analyze the relationship between marginal cost and marginal social benefit in the context of public goods.

Conceptualize non-excludability and non-rivalry as defining characteristics of public goods.

Apply the principle of marginal social benefit being equal to the sum of individual marginal benefits in determining the efficient provision of public goods.

---

Definitions:

Second Seminole War

A conflict from 1835 to 1842 in Florida between the United States and the Seminole Native American tribe, marking the longest and most costly of the Indian Wars in American history.

Seminoles

A Native American people originally from Florida, known for their resistance against US forces in the Seminole Wars.

Crossing The Rockies

The act of traversing the Rocky Mountains, which was a significant barrier to westward expansion in the United States during the 19th century.