Which of the Following Statements Is True

question 14

Multiple Choice

Which of the following statements is true ?

• A) The national debt is the current year's amount by which the government is spending more than it collects as taxes.
• B) Deficits are financed by the government issuing for sale more government securities.
• C) The debt ceiling refers to the amount of debt at which the government is officially declared as being bankrupt.
• D) Internal national debt is the portion of the national debt owed to foreigners.

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Definitions:

Average Cost Curve

A graphical representation showing the cost per unit of output at different levels of production.

Total Market Demand

The aggregate demand for a good or service across all consumers in a market at various price points.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the average cost per unit of output decreases with increasing scale.

Per-unit Cost

The cost incurred for producing a single unit of a product, which is calculated by dividing the total cost of production by the total number of units produced.