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An Explanation of Why Governments Are Willing to Burden Future

question 95

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An explanation of why governments are willing to burden future generations with debt to finance a war today is that future generations will enjoy peace and must pay something.


Definitions:

Efficient Output Level

The level of production where the total costs of producing a good or service are minimized while maximizing production.

Profit-Maximizing Price

The price at which a business can sell its product or service to achieve the highest possible profit.

Marginal Cost

The cost added by producing one additional unit of a product or service.

Kink

A sudden change in the rate or direction of a curve or line, often used in economics to describe a sharp change in a demand or supply curve.

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