Which of the Following Is Not Correct

question 18

Multiple Choice

Which of the following is not correct?

• A)A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
• B)Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
• C)The U.S.debt per-person is large compared with average lifetime income.
• D)In 2005, the U.S.government had a deficit.

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Definitions:

Competitive

A market characteristic where multiple firms or entities vie for customers, influencing prices, quality, and services in the process.

Market Price

Market Price is the current price at which a good or service can be bought or sold in a marketplace.

Competitive Price-Taker

A market participant who must accept the prevailing market prices because they have no influence over those prices due to their small market share.

Average Total Cost

The total cost of production divided by the quantity of output produced, representing the average cost per unit of output.