When the U

question 51

Multiple Choice

When the U.S. government spends more than it receives, it typically finances the shortfall by selling IOUs, commonly called _____.

• A) entitlements
• B) long-term loans
• C) credit vouchers
• D) treasuries
• E) interest investments

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Definitions:

Aristotle

An ancient Greek philosopher and scientist, one of the greatest intellectual figures of Western history.

Free Riders

Free riders are individuals who benefit from resources, goods, or services without paying for the cost of the benefit, often leading to inefficiencies in markets or public services.

Efficient Outcome

A state in which resources are allocated in a way that maximizes total surplus; there are no missed opportunities in production or consumption.

Tragedy of the Commons

A situation in which individuals, acting according to their own self-interest, deplete shared resources, resulting in long-term social losses.