Government Is Typically a ________

question 66

Multiple Choice

Government is typically a ________.

• A) net provider of funds because it borrows more than it saves
• B) net demander of funds because it borrows more than it saves
• C) net provider of funds because it can print money at will
• D) net demander of funds because it saves more than it borrows

---

Definitions:

Price Markup

The practice of setting the selling price of a product higher than its initial cost to achieve a profit margin.

Elastic Demand

A type of demand that responds significantly to changes in price, where a slight price change leads to a substantial change in the quantity demanded.

Marginal Cost

The cost increase associated with the creation of one additional unit of a good or service.

Profit Maximizing

The process by which a firm determines the price and output level that returns the greatest profit.