Which of the Following Is Not Associated with Budget Deficits

question 32

Multiple Choice

Which of the following is not associated with budget deficits?

• A) When they accumulate, they tend to add to the public debt.
• B) They result solely from revenue shortfalls.
• C) When governments run them, they are said to be "in the red."
• D) They result when governments are unable or unwilling to balance their budgets.

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Definitions:

Mutual Interdependence

A situation in oligopoly markets where the actions of one firm directly affect and are affected by the actions of other firms.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for significant influence over price.

Countervailing Power

The theory that competitive markets can be achieved through balancing the power of large companies by organizing a counterforce, such as labor unions or government regulations.

Homogeneous Oligopoly

A market structure in which a few firms offer identical or very similar products or services, leading to significant interdependence in decision-making.