In the Long Run,large and Continuing Budget Surpluses

question 55

Multiple Choice

In the long run,large and continuing budget surpluses

• A) mean higher taxes and a lower standard of living
• B) mean a larger money supply and higher interest rates
• C) are a problem because they crowd out private spending
• D) permit the government to lower taxes,thereby encouraging work,investment,and saving
• E) mean a larger money supply and lower interest rates

---

Definitions:

Average Revenue

Total revenue from the sale of a product divided by the quantity of the product sold (demanded); equal to the price at which the product is sold when all units of the product are sold at the same price.

Average Cost

is the cost per unit of output, calculated by dividing total costs by the total quantity of output produced.

Patent

A legal document granted by the government, giving an inventor exclusive rights to use, make, and sell an invention for a certain period of time.

Business Process

A set of activities or tasks that organizations perform in a repeatable and systematic manner to achieve designated goals.