As the economy contracts, tax revenues:
A. fall and transfer payments rise, causing the economy to contract by less than it would in the absence of automatic stabilizers.
B. fall and transfer payments fall, causing the economy to contract by more than it would in the absence of automatic stabilizers.
C. rise and transfer payments rise, causing the economy to contract by more than it would in the absence of automatic stabilizers.
D. rise and transfer payments fall, causing the economy to contract by less than it would in the absence of automatic stabilizers.
Answer: A
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This prisoner's dilemma game shows the payoffs associated with two firms, A and B, in an oligopoly and their choices to either collude with one another or not.
Given the payoffs in the matrix shown, Firm A:
A. does not have a dominant strategy. B. has a dominant strategy to compete. C. has a dominant strategy to collude. D. None of these statements is true.
The production function shows the volume of output that can be produced from given inputs.
Answer the following statement true (T) or false (F)
The Food for Peace program is designed to:
A. achieve 100 percent price parity for all farm products. B. discover new uses for farm products through research and development. C. take agricultural land out of the production of feed grains. D. facilitate the distribution of surplus U.S. farm products in the developing countries.
In the long run, monopolistic competition starts to look like
A. monopoly. B. a market in disequilibrium. C. perfect competition. D. oligopoly.