The Net Position of the U

question 13

Multiple Choice

The net position of the U.S. government is not:

• A) The net assets of the federal government.
• B) Equal to the difference between the assets and liabilities of the federal government.
• C) Comprised of cumulative results of operations and unexpended appropriations.
• D) Available for expenditure.

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Definitions:

Normal Profit

The level of profit that is just sufficient to keep an entrepreneur in business, equaling total revenues minus explicit and implicit costs.

Price System

An economic mechanism wherein prices are determined by the interaction of supply and demand, guiding the allocation of resources and distribution of goods and services.

Scarce Goods

Items that are limited in availability relative to the desires or needs of consumers.

Laissez-Faire Economy

Literally from the French: “allow [them] to do.” An economy in which individual people and firms pursue their own self-interest without any central direction or regulation.