Australia ________ Concerned with Being a Net Borrower If Australia

question 44

Multiple Choice

Australia ________ concerned with being a net borrower if Australia is using all of the borrowed funds to ________.

• A)should be; finance investment
• B)should not be; finance consumption
• C)should not be; finance imports
• D)should be; pay interest to service debt

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Definitions:

Perfectly Competitive

A market structure characterized by a large number of small firms, identical products, and free entry and exit, leading to price-taking behavior.

Optimal Output Rule

The principle that profit is maximized by producing the quantity of output at which the marginal revenue of the last unit produced is equal to its marginal cost.

Marginal Revenue

The additional income earned by a company from selling one more unit of a good or service, reflecting the benefit of increased production.

Marginal Cost

The boost in expense for crafting one more unit of a product or service.