The Debt Ceiling _____

question 181

Multiple Choice

The debt ceiling _____

• A) can be changed whenever it is necessary.
• B) can be changed even if it is not necessary.
• C) has never been enforced.
• D) has never been hit.
• E) is not legal and is only a formality.

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Definitions:

Feasible Allocation

In economics, it refers to the distribution of resources or goods in such a manner that it is possible given the available supply.

Second Welfare Theorem

An economic principle stating that under certain conditions, any efficient allocation of resources can be attained through a competitive equilibrium, assuming perfect markets and price flexibility.

Pareto Optimal

A distribution state of resources where trying to improve the status of one individual inevitably leads to the decline of another's.

Competitive Equilibrium

A state in a market-based economy where supply equals demand, and prices are stable, facilitating the optimal distribution of resources.