All of the following fiscal policies will contribute to increasing budget deficits except:
a. tax cuts.
b. increases in defense expenditures.
c. increases in Social Security payments to the elderly and disabled.
d. cuts in aid to farmers.
Answer: d. cuts in aid to farmers.
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Cyclical unemployment arises when
A. unskilled or low-skilled workers find it difficult to obtain desirable, long-term jobs. B. output and employment are below full-employment levels. C. labor must be reallocated from industries that are shrinking to areas that are growing. D. workers must search for suitable jobs and firms must search for suitable workers.
Members of the Federal Reserve Board of Governors are:
A. Appointed by Congress to staggered 14-year terms B. Selected by the Federal Open Market Committee for 4-year terms C. Appointed by the President to staggered 14-year terms D. Selected by each of the Federal Reserve banks for 4-year terms
The marginal physical productivity of labor is:
a. the slope of the total output curve at the relevant point. b. the negative of the slope of the total output curve at the relevant point. c. the slope of the line connecting the origin with the relevant point on the total output curve. d. the negative of the slope of the line connecting the origin with the relevant point on the total output curve.
For firms in perfect competition, the profit-maximizing quantity occurs when?
a. Marginal revenue equals average variable cost. b. Price equals marginal revenue. c. Price equals marginal cost. d. Marginal costs equal total revenue.