If the Government's Expenditures Exceeded Its Receipts, What Would It

question 17

Multiple Choice

If the government's expenditures exceeded its receipts, what would it most likely do?

• A) It would lend money to a bank or other financial intermediary.
• B) It would borrow money from a bank or other financial intermediary.
• C) It would directly buy bonds from the public.
• D) It would directly sell bonds to the public.

Understand the concept of optimal allocation of scarce resources in a purely competitive industry.

Describe conditions for long-run equilibrium in a purely competitive firm.

Identify the features indicating productive efficiency and allocative efficiency in pure competition.

Illustrate the relationship between marginal cost, marginal revenue, price, and average total cost in the context of pure competition.