All of the following are automatic fiscal stabilizers EXCEPT
A. a congressionally mandated decrease in tax rates to stimulate the economy.
B. an increase in unemployment expenditures during a recession.
C. a decrease in overall tax revenues during a recession.
D. a decrease in unemployment compensation payments during an expansion.
Answer: A
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An example of a firm in monopolistic competition is
A) your local water company. B) the sole cable television company. C) the many Chinese restaurants in San Francisco. D) Kansas Power and Light, the sole provider of electricity in Kansas City. E) Shaniq, a wheat farmer.
The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. What is the marginal social cost to the economy of Kaffenia of producing the 100th dozen doughnuts each day?
A) $10.00 per dozen B) $8.00 per dozen C) $6.00 per dozen D) $4.00 per dozen
As manager of the only video rental store in town, you have noticed that on Thursday through Sunday the demand for movie rentals is much less elastic than it is on Monday through Wednesday. If you are currently charging $3 for a two-night rental, give an example of a pricing policy that might increase your revenues compared to a single-pricing strategy.
What will be an ideal response?
Suppose there is a reduction in the saving rate. Explain what effect this will have on output, output per worker, the rate of growth of output, and the rate of growth of output per worker
What will be an ideal response?