The U.S. Government's Budget

question 40

Multiple Choice

The U.S. government's budget

• A) must be balanced each year.
• B) has mostly been in surplus during the past 30 years.
• C) has mostly been in deficit during the past 30 years.
• D) has always been in deficit during the past 30 years.

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Definitions:

Cartel

An association of independent companies or entities that agree to limit competition between themselves, often to control prices and production in a particular market.

Allocative Efficiency

A state of the economy in which the distribution of resources among different uses is optimal, reflecting consumer preferences and maximizing total societal welfare.

Productive Efficiency

A situation in which a goods or services are produced at the lowest possible cost, utilizing all available resources efficiently.

Monopoly Power

The ability of a single supplier to control the market price and supply of a product or service.