Decreasing taxes during a recession is an example of
A. an automatic stabilizer.
B. discretionary economic policy.
C. policy lags.
D. an automatic destabilizer.
Answer: A
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A production function describes the
A) technological possibilities for converting factor inputs into outputs. B) intellectual possibilities for converting factor inputs into outputs. C) amount of resources available to the representative firm. D) actual process of converting factor inputs into outputs.
The price rationing mechanism of a freely functioning market leads to the most efficient use of resources because
A) all gains from mutually beneficial trade are captured. B) the Federal Trade Commission regulates the market. C) of the rise of the legislative apparatus that supports trade. D) the Justice Department monitors market activities.
Which firm is not dealing with adverse selection
a. a manufacturer requires a 90 day probationary period for new employees b. a temporary clerical agency requires a typing test c. a manufacturer requires suppliers to be ISO 900 . certified d. Smokers get the same life insurance rates as non-smokers
A transfer payment is a payment to a person that is made in return for goods and services supplied
Indicate whether the statement is true or false