The National Debt

question 98

Multiple Choice

The national debt:

• A)is a flow variable measuring the net accumulation of past deficits.
• B)is a stock variable measuring the net accumulation of past deficits.
• C)measures the amount by which government revenues exceed outlays in a particular year.
• D)includes the projected liabilities of Social Security,Medicare,and other federal retirement programs.
• E)includes outstanding liabilities of federal,state,and local governments minus government financial assets.

---

Definitions:

Goods and Services

The tangible and intangible outputs of an economy that satisfy consumer needs and wants.

Product Market

The marketplace where final goods or services are offered to consumers, businesses, and the public.

Factor Market

A marketplace for the services of a factor of production (e.g., labor, capital), where firms buy resources they need to produce goods and services.

Circular Flow

An economic model depicting how money moves through an economy between producers and consumers, illustrating the continuous flow of goods and services and financial transactions.