Which of the Following Is NOT a Problem with Excessive

question 73

Multiple Choice

Which of the following is NOT a problem with excessive debt?

• A)It worsens the central government's budget position by adding large debt service payments to other budget items.
• B)It reduces the quantity of resources available to invest in economic development.
• C)If debt service is substantial, schools, health clinics, roads, ports, other infrastructure, and social needs are less likely to be addressed.
• D)It can reduce the chance of a crisis.

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Definitions:

Innovation

The process of creating new products, services, or processes, which can drive economic growth and improve quality of life.

Efficient Level

The point at which a system or operation is performing at its maximum potential without wasting resources.

Megawatts

A unit of power measurement equal to one million watts, commonly used to express the output of large power plants or the amount of electrical energy used by large entities.

Consumer Surplus

The difference between the total amount consumers are willing and able to pay for a good or service and the total amount they actually do pay.