Automatic stabilizers are government programs or policies that will counteract the business cycle without any new government action.
Answer the following statement true (T) or false (F)
True
See the definition of an automatic stabilizer in the textbook.
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Let's assume producers in Canada can make 200 units of beef or 50 units of oranges, and U.S. producers can make 50 units of beef or 200 units of oranges per time period. Therefore
A) U.S. producers have a comparative advantage in oranges. B) Canadian producers have a comparative advantage in beef. C) both countries could gain through specialization and exchange. D) all of the above are true. E) none of the above is true.
In the IS-LM diagram, we are in "general equilibrium"
A) at all points. B) at all points on the LM curve. C) at all points on the IS curve. D) only at the intersection of the IS and LM curves.
When a firm's marginal productivity declines as output increases, then the firm is experiencing
a. Diminishing returns to scale b. Constant returns to scale c. Increasing returns to scale d. Increasing marginal product
The U.S. Department of Agriculture defines the official poverty level as
a. the bottom 10 percent of the income distribution b. the poorest 2 million households c. income less than $15,000 d. income equal to three times the estimated cost of a nutritionally adequate diet e. being unemployed for more than two months